BTC passes $11 000 with ease – next stop $14 000?

Never mind the fact that bitcoin just surged up past $10k like it wasn’t even there, it’s now testing $11k on the very next day. This is the old bitcoin we are familiar with and it’s so good to see that bitcoin has its “mojo” back, so to speak.

Of course after a breakout price spike like we saw in the past 24 hours, we can expect some retracement, but with bitcoin finally acting like a bear that has come back to life after hibernation, let’s hope it more like a bull on its way to the Moon. Mixed metaphors aside though, I am very bullish right now on the entire cryptocurrency market. With bitcoin leading the way, we can expect to see it pull all the other altcoins up in value, at least in dollar price.

Some of the other altcoins have already been pre-empting bitcoin’s bull run, like Ethereum at over $300 once more and of course the other newer DeFi coins having their day in the sun. In the broader spectrum of the bitcoin price history, this is the start of the next major bull run or price climb for the next two years or more. Now that the halving is over, we are on our way to new ATHs (all time highs).

Bitcoin is expected to rise in price due to the mathematical formula of supply and demand. With the halving we saw the mining fee cut in half. Miners are paid half as much to keep the network going compared to before the halving. As a result we will only see 6.25 bitcoin produced at a time, instead of the earlier 12.5. With less supply, and at least a constant demand, naturally value will rise as people are willing to pay more for the scarcer asset.
That is the logic built into the bitcoin code by its inventor Satoshi Nakamoto in 2008. It’s interesting to note that Satoshi released the bitcoin white paper in late 2008, exactly at the time of the last global financial crash and the Great Recession. Now, just at the halving, precisely 12 years later, we see the next global financial crash and collapse. I wonder what they will call this economic recession? If we had the Great Depression in 1929, and the Great Recession in 2008/9, then what do we have today?

Whatever we call it – the Great Reset I presume – bitcoin is poised to act as the alternative and hedge against fiat currency, which may be on the verge of a meltdown over the next two years. With all that money printing, fiat currency is working in the exact opposite way to bitcoin. The one is becoming scarcer with each halving, while the other is becoming more prolific with each trillion dollars printed.

Naturally the laws of math and gravity will prevail and the one will collapse in value while the other soars. Bitcoin is now deflationary while cash is mired with inflation. You cash will buy you less and less with time, while bitcoin will afford you more.

Now on the weekly chart we can see that bitcoin has made tow successive weeks of steady and strong growth in price, up almost 25% in the past two weeks, and sitting at around 20% to the upside since the last low. Price is sitting nicely above the 221 day EMA (moving average) as well as the other EMAs, and the 21 weekly EMA is about to cross bullish over the 50 weekly EMA in the next week or two at the current trajectory.

Once that bull cross or golden cross occurs, we will be more certain of the bull trend and more investors will want to buy in on the certainty of the upward momentum. Regardless of what the mainstream markets are doing, like the stocks, metals and forex, bitcoin is set to continue its uptrend for the next two years, which makes it the ultimate safe haven and wise investment.

We have $14 000 as the last local high in June 2019, a year ago, so we might expect some resistance there for a while and a retracement of sorts down to the Fibonacci levels of 61.8% or the golden ratio (golden pocket) where price likes to find support on retracement and a bounce, generally speaking. That’s the magic of bitcoin as mystical as it seems. The price appears to follow a beautiful harmonious pattern aligned with nature and the universe, making it appear as if it were alive or certainly molded by the same influences as the design of a flower or a spiral galaxy. We are certainly all in synch, so let’s allow nature to take its course while we simply jump on board for the ride.

(image pixabay)