Bitcoin will probably never drop below $10k again
There are several reasons to believe that Bitcoin will never see sub $10k numbers again...
This may sound like a bit of hyperbole, but there a several reasons to believe that bitcoin will never drop below $10k again.
The first having to do with what we have been seeing over the last several weeks...
We've been seeing very large corporate institutions buying bitcoin.
We are not talking about a couple million dollars, no we are talking about hundreds of millions and billions of dollars flowing into bitcoin.
And guess what, many of them were buying between $10-$11k.
You can do the math from this chart to get an idea on the price these corporations paid for their bitcoin:
We are looking at billions of dollars flowing in around that $10k-$11k level which likely means these corporations are going to defend that price point should the price pull back towards it.
Bitcoin just keeps doing what Bitcoin do
The second major reason that we are never likely to see bitcoin below $10k again has to do with history...
After every previous halving event, the price of bitcoin saw exponential price gains.
Not only did it see exponential prices gains, but when it eventually pulled back 80% from it's peaks, it never got as low as the previous highs.
That means that should bitcoin breakout and have another parabolic move, the pullback likely never even gets back to $20k.
I am not sure that exact trend will play out again here, but even if it doesn't, for bitcoin to break below $10k again at this point, it would have to do something different than it has ever done...
Also, based on the Stock-to-Flow model, bitcoin is going to start going up very soon, and it likely will never come back to the price point again.
That means corporations, past patterns, and stock to flow all are saying there is a very good chance we never see bitcoin dip much below these levels.
Based on the reasons above, I sure hope you loaded up below $10k. :)
Stay informed my friends.
Posted Using LeoFinance Beta