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Most everyone in the space was confident it would set a new All Time High again, it was just a matter of time. What's uncertain is how cyclical it will continue to be.
In the past their have been a handful of 80% corrections following big runs like this, but some factors changed; more people in the market now help stabilize price, especially these big companies like MicroStrategy who openly share the Bitcoiner sentiment of holding their position forever.
Right now, there is more demand for bitcoin than there is supply which acts as rocket fuel for price appreciation as it evaporates the downward sell pressure from miners. That's rather new to the market and it's very easy to forecast that phenomenon becoming more intense. Something to note on this also is, while anyone can start mining with the proper equipment, that doesn't equate to any more bitcoin being mined; what happens is there is a difficulty adjustment making the bitcoin network more secure, while the bitcoin produced is distributed amongst the participating miners/pools. In addition, bitcoin mining becomes very expensive so the price needs to be high relative to the production for production to continue and security to persist.
To circle back on its cyclical nature: historically, the 200 week moving average has never been broken so that is typically a standard as to what the price can bottom out on, that's around $8k currently. But, again, we're entering new territory and a correction below $15.5k where institutions are in at logically becomes a new standard.
Moreover, on the topic of corrections and cyclical nature, be mindful of the "Bitcoin Rich List" or "Bitcoin Distribution Chart" hosted by 'Bitinfocharts.com
This shows us that currently, 42.59% of the market is owned by only 2,179 addresses (addresses not people, some people may have multiple addresses in this range) and that means the dumping power of these whales to flood the market with bitcoin is tremendous. Especially when it's likely some of these guys from 2009-2013 know each other and can coordinate these dumps, to panic the market which causes an absolute free-fall in price from new market participants, then when they get back in you only see that bottom price for a very short time. There is a note that price went to $3,858 on this day last year, I watched that happen in real time and I'll tell you, the price hit that level for seconds and bounced over $5k in minutes.
Now I mentioned previously what I think will happen if Trump wins, I think we'll see a correction take place. We're stilling rocketing up right now so what it corrects to is a big unknown. If Biden secures this victory, the US Republic is essentially destroyed. The CCP plan would essentially be to weaken our defenses over a 7 year period and go for a total take over in 7-8 years. No one's selling an unconfiscatable, finite supplied asset into the collapse of the US Republic. That's a black swan of black swan events.
In the past their have been a handful of 80% corrections following big runs like this, but some factors changed; more people in the market now help stabilize price, especially these big companies like MicroStrategy who openly share the Bitcoiner sentiment of holding their position forever.
Right now, there is more demand for bitcoin than there is supply which acts as rocket fuel for price appreciation as it evaporates the downward sell pressure from miners. That's rather new to the market and it's very easy to forecast that phenomenon becoming more intense. Something to note on this also is, while anyone can start mining with the proper equipment, that doesn't equate to any more bitcoin being mined; what happens is there is a difficulty adjustment making the bitcoin network more secure, while the bitcoin produced is distributed amongst the participating miners/pools. In addition, bitcoin mining becomes very expensive so the price needs to be high relative to the production for production to continue and security to persist.
To circle back on its cyclical nature: historically, the 200 week moving average has never been broken so that is typically a standard as to what the price can bottom out on, that's around $8k currently. But, again, we're entering new territory and a correction below $15.5k where institutions are in at logically becomes a new standard.
Moreover, on the topic of corrections and cyclical nature, be mindful of the "Bitcoin Rich List" or "Bitcoin Distribution Chart" hosted by 'Bitinfocharts.com
This shows us that currently, 42.59% of the market is owned by only 2,179 addresses (addresses not people, some people may have multiple addresses in this range) and that means the dumping power of these whales to flood the market with bitcoin is tremendous. Especially when it's likely some of these guys from 2009-2013 know each other and can coordinate these dumps, to panic the market which causes an absolute free-fall in price from new market participants, then when they get back in you only see that bottom price for a very short time. There is a note that price went to $3,858 on this day last year, I watched that happen in real time and I'll tell you, the price hit that level for seconds and bounced over $5k in minutes.
Now I mentioned previously what I think will happen if Trump wins, I think we'll see a correction take place. We're stilling rocketing up right now so what it corrects to is a big unknown. If Biden secures this victory, the US Republic is essentially destroyed. The CCP plan would essentially be to weaken our defenses over a 7 year period and go for a total take over in 7-8 years. No one's selling an unconfiscatable, finite supplied asset into the collapse of the US Republic. That's a black swan of black swan events.
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