Bitcoin has taken a pounding on the release of the Bitcoin spot ETF. I feel like saying told you so. However the Bitcoin maxis are explaining it away as ‘sell on news’ which it isnt. Sell on news occurs immediately, it happens, not after a delay. You sell on news, not sell kind of sometime later after news.
Bitcoin went up on news. Then there was a pause and then the slump followed.
This slump is likely to do with the Greyscale Bitcoin trust and liquidation from it and into ETF and perhaps profit taking from thoe that bought at a 50% discount taking profit. Or so the story goes.
If this is the case shortly the price will rally and this changeover process will come to an end.
Then there is the impending halvening which will push the price.
The spot etf is a success with billions going into various ETF, the question is simply will the ETFs add value or destroy value to the ecosystem.
It should add value but the sneeky Wall Street types are always looking for ways to ransack everyone, so you cant be sure.
Here is a chart of the ongoing situation.
…so you can see what I think happens next. Its up, up and away.
Im pretty bullish but not heavily committed to coins or tokens. Actually I am committed in tokens and blockchain equities but nothing like I was in the last two bubble/busts. However there is great profits to be made if the cycle repeats even if its not on the same scale.
We seem to have seen a panic low, so the game now is to see whether Bitcoin can keep on repeating the pattern of the last vertical. I think that is quite likely, but not as in the past a ‘no brainer’ because the sums involved have got vast.
To stay on target it should be range bound for a time then break to a new vertical. This sort of fractal analysis has been strongly predictive in the past, but its only a guide not an iron law. If the chart goes out of character and loses it resemblance to previous booms, then it will be time to reappraise.
Again, dollar cost averaging is the way to go.