Up like a rocket, down like a rock. This is the story of Bitcoin and what drives its magnetic allure. Time after time the Bitcoin boom/bust cycle has delivered the goods for the high risk speculator and here we are in the next Crypto vertical.
To me the chart looks like a classic break out and it is about time that it happens seeing how core to my model is the impending halvening. This event where new Bitcoin supply halves has driven Bitcoin prices before and its fair to guess that half the supply has lead to a doubling of price. Ther due date for the event is April 19th now only 2 months away, so that it is a good suggestion that the market should adjust to this time horizon and start to motor.
Now in my book this leads to this a quick rise to above $60,000: And by the time this article was finished, Bitcoin has jumped again underlining the strength of this thesis.
This of course will make perfect sense to a bull, with another leg up to $100,000 and beyond on the cards as far as they are concerned.
The below was the final barrier to the next leg up. Bitcoin rose immediately above $50,000 hesitated pulled back below $50,000 and then smashed through this morning to $51000, a clear level above the below break out level.
This is extremely bullish.
I have written over and over the way to play Bitcoin is to ‘dollar cost average’ and that is still the way to go. Jumping in to a market boots first is not great for mental health and as anyone who has dollar cost averaged in will say, DCA smooths out the emotional highs and lows of building a position avoiding the sort of whiplash which lies ahead that can make you bail on a perfectly good strategy because the stakes get to frightening too fast.
‘DCA’ is still the way to go but for reckless plungers the time is highly suggestive of the imminent Bitcoin vertical we’ve been waiting for since the last boom turned to bust.