Bitcoin - Weekly update for Sunday June 23, 2019
Updated
Hello my fellow Bitcoinistas!
The week was a heck of a ride was it not? I know we still have a couple hours to go before this week's candle official closes but I'm going to go ahead and call this a green week. lol. For those of you following my work you already know this chart pretty good. For those that don't you will notice that after the previous breakout (yellow left) Bitcoin experienced SEVERAL weeks of bullish price increases before taking a break, then resumed again, and again, and again until finally topping out around 20K. We appear to be in the same pattern. Breakout, touch-back, red week, engulfed by green week, followed by many green weeks to follow.
You can of course short this if you want, but I believe those still calling for 6K and especially 3K are just smoking crack or some other illegal substance in my opinion. Can you make money on the short side too? Sure you can if you are a friggin trading ninja and are well skilled at snatching raw chicken out of the mouths of alligators. But go ahead, try your luck. You may be the ONE. :0)
Why fight the trend? Look at the 20/40 weekly moving average cross on the right of the chart. It crossed on June 2nd and just keeps expanding. To get those averages to uncross right now somebody would have to crack Bitcoin and ruin it for everybody forever. Really, it would take a complete failure of Bitcoin to get prices to come back down that far right now and uncross those averages. Look at the same averages on the left of the chart. Look at how long they held up under the last bull run. It takes a lot and a long time to uncross these averages once they cross over bullish. The top of the 20 week MA, right now, is about 6K, just to touch it. Do people really think we are going to undo all the progress of the past few weeks in just a few hours, days, weeks, etc. and break below 6K. Really? Again, it just tells me that crack is cheap right now and all the Bears are smoking it. We may not hit 20K next week but we ain't hitting 6K either. The odds and averages say we are going higher long term not lower so don't buy the BS.
What is driving this? For me it is what is has always been. The scarcity and security of Bitcoin as a store of value. Like physical gold, a place to park your savings and wealth so that it does not loose purchasing power over time. Has anybody that bought gold or BTC lost their purchasing power from 10 years ago? I don't think so. If anything it has increased tremendously, especially for BTC. This is what people want in sound money. Limited supply, no government control, no unlimited printing, secure, easily stored, easily divided, easily transported, easily transferred, and cannot be counterfeit. Bitcoin has ALL the benefits of gold and several benefits that gold does not have. You can't make a Gold watch with Bitcoin, but you sure can buy a very nice gold watch with Bitcoin. Rolex anyone? :0)
What else is driving Bitcoin right now? The financial industry, Facebook, and the public awareness that brings. In short, the Facebook news about Libra is a good thing for Bitcoin. It validates the idea of crypto and brings awareness to those sitting on the fence. The big difference is that Libra will be tied to fiat currency value and other debt instruments. All the crap that is NOT associated with Bitcoin. People argue "But Libra will be stable" That may be true. Libra may achieve the goal of always being worth about 1 dollar or 1 whatever the unit may be. Here's the rub. Over time whatever cost you 1 Libra today may cost you 10 or 100 Libra later. It will lose purchasing power over time just like all the crap it is supposed to represent. How is Bitcoin different? It is actually a form of real MONEY, not just a currency. The value of Bitcoin when compared to all other currencies will continue to rise in those units as those units continue to race towards zero. All fiat currencies eventually get reset and go to zero. History is littered with dead currencies, not money, currencies. We have been taught that green toilet paper is "money" and it is NOT. It is fiat currency printed by the government in unlimited quantities and dilutes all those green pieces of toilet paper that were printed before them. We all need to recognize the difference between what is sound money and what is just a currency. When you can figure out the distinctions you will be in a much better frame of mind as to were to invest your labor.
At any rate, that is my rant for this week. I'm still bullish on Bitcoin and plan to be so for quite some time. The halving is coming up next year and the projected stock to flow ratio puts BTC at no less than 60K at that time. Is that a guarantee? We won't know until we see it. Nothing is a guaranteed in life. Everything is a risk. But for me, being long on Bitcoin is a risk I am willing to take. Especially when I compare it to all the other options available. Gold, silver, and Bitcoin, the only real money I am currently aware of. I said "money" not assets, currency, valuables, etc. I said money.
I hope this week treated you right and you put many more more Satoshis in your pile. If you were a Bear, sorry about your luck. For the right price you can come collect your skins. They are on the floor in front of my fireplace right now but I have more than I need. Please come buy them back, I'm trying to get rid of them. :0)
BBS out!
Oh yeah, I almost forgot. If you like these updates and feel they are worthy of a thumbs up I would certainly appreciate it? Thanks in advance.
The week was a heck of a ride was it not? I know we still have a couple hours to go before this week's candle official closes but I'm going to go ahead and call this a green week. lol. For those of you following my work you already know this chart pretty good. For those that don't you will notice that after the previous breakout (yellow left) Bitcoin experienced SEVERAL weeks of bullish price increases before taking a break, then resumed again, and again, and again until finally topping out around 20K. We appear to be in the same pattern. Breakout, touch-back, red week, engulfed by green week, followed by many green weeks to follow.
You can of course short this if you want, but I believe those still calling for 6K and especially 3K are just smoking crack or some other illegal substance in my opinion. Can you make money on the short side too? Sure you can if you are a friggin trading ninja and are well skilled at snatching raw chicken out of the mouths of alligators. But go ahead, try your luck. You may be the ONE. :0)
Why fight the trend? Look at the 20/40 weekly moving average cross on the right of the chart. It crossed on June 2nd and just keeps expanding. To get those averages to uncross right now somebody would have to crack Bitcoin and ruin it for everybody forever. Really, it would take a complete failure of Bitcoin to get prices to come back down that far right now and uncross those averages. Look at the same averages on the left of the chart. Look at how long they held up under the last bull run. It takes a lot and a long time to uncross these averages once they cross over bullish. The top of the 20 week MA, right now, is about 6K, just to touch it. Do people really think we are going to undo all the progress of the past few weeks in just a few hours, days, weeks, etc. and break below 6K. Really? Again, it just tells me that crack is cheap right now and all the Bears are smoking it. We may not hit 20K next week but we ain't hitting 6K either. The odds and averages say we are going higher long term not lower so don't buy the BS.
What is driving this? For me it is what is has always been. The scarcity and security of Bitcoin as a store of value. Like physical gold, a place to park your savings and wealth so that it does not loose purchasing power over time. Has anybody that bought gold or BTC lost their purchasing power from 10 years ago? I don't think so. If anything it has increased tremendously, especially for BTC. This is what people want in sound money. Limited supply, no government control, no unlimited printing, secure, easily stored, easily divided, easily transported, easily transferred, and cannot be counterfeit. Bitcoin has ALL the benefits of gold and several benefits that gold does not have. You can't make a Gold watch with Bitcoin, but you sure can buy a very nice gold watch with Bitcoin. Rolex anyone? :0)
What else is driving Bitcoin right now? The financial industry, Facebook, and the public awareness that brings. In short, the Facebook news about Libra is a good thing for Bitcoin. It validates the idea of crypto and brings awareness to those sitting on the fence. The big difference is that Libra will be tied to fiat currency value and other debt instruments. All the crap that is NOT associated with Bitcoin. People argue "But Libra will be stable" That may be true. Libra may achieve the goal of always being worth about 1 dollar or 1 whatever the unit may be. Here's the rub. Over time whatever cost you 1 Libra today may cost you 10 or 100 Libra later. It will lose purchasing power over time just like all the crap it is supposed to represent. How is Bitcoin different? It is actually a form of real MONEY, not just a currency. The value of Bitcoin when compared to all other currencies will continue to rise in those units as those units continue to race towards zero. All fiat currencies eventually get reset and go to zero. History is littered with dead currencies, not money, currencies. We have been taught that green toilet paper is "money" and it is NOT. It is fiat currency printed by the government in unlimited quantities and dilutes all those green pieces of toilet paper that were printed before them. We all need to recognize the difference between what is sound money and what is just a currency. When you can figure out the distinctions you will be in a much better frame of mind as to were to invest your labor.
At any rate, that is my rant for this week. I'm still bullish on Bitcoin and plan to be so for quite some time. The halving is coming up next year and the projected stock to flow ratio puts BTC at no less than 60K at that time. Is that a guarantee? We won't know until we see it. Nothing is a guaranteed in life. Everything is a risk. But for me, being long on Bitcoin is a risk I am willing to take. Especially when I compare it to all the other options available. Gold, silver, and Bitcoin, the only real money I am currently aware of. I said "money" not assets, currency, valuables, etc. I said money.
I hope this week treated you right and you put many more more Satoshis in your pile. If you were a Bear, sorry about your luck. For the right price you can come collect your skins. They are on the floor in front of my fireplace right now but I have more than I need. Please come buy them back, I'm trying to get rid of them. :0)
BBS out!
Oh yeah, I almost forgot. If you like these updates and feel they are worthy of a thumbs up I would certainly appreciate it? Thanks in advance.
Note
Last week's update in case you missed it.Note
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