Bitcoin previously hit $ 42,000, but not with these characteristics. The market seems healthy and practically no-fault. Greed only shows its face after months of fear. How did we get here? Stack sats calmly and consistently, this is how it works. What does this mean for the future of BTC price? Should the missile take off?
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Before we get into that, let’s take a look at the diagram from Bitcoin Magazine’s Dylan LeClair. It gives the Federal Reserve’s balance sheet a run for its money as the most optimistic bitcoin chart.
Take advantage of the first time we hit $ 42,000 BTC in February compared to now.
That is all on point. pic.twitter.com/QjtJ0zWSgj
– 🟠Dylan LeClair🟠 (@BTCization) August 6, 2021
The difference is amazing. Bitcoin came here in February by borrowing money from exchanges. The futures market burned and grew. The carnage was still a month away. Nowadays, after a few months in the red, leverage only lifts your head. The casino is almost empty. Real money drove back the ascent from hell. Little by little, step by step.
Does that mean we are ready for a sudden explosion into space?
BTC price chart for 08/07/2021 on Bitstamp | Source: BTC/USD on TradingView.com
If not from leverage, where does the money come from?
Some institutions are likely to buy. Chances are we will be declaring bitcoin holdings in the next quarter. However, according to on-chain analyst Will Clemente, there is evidence that real, everyday people are joining the network all the time. And these new bitcoiners are joining an army of believers who never stop buying.
Bitcoin’s Gini coefficient is getting healthier. According to William Clemente, if you filter out ETFs and grayscale, on-chain analysis shows that “over time, whales are just handing out their coins.” In his opinion, companies with less than 10 BTC never stop buying. “Since May 19, retail has been piling up more than the whales.” With each passing day, the “healthy distribution of the network” of Bitcoin gets better and better.
The “dollar cost averaging” investment strategy is gaining in importance in part of the population. And it seems to be spreading. Investopedia defines DCA as:
An investment strategy in which an investor divides the total amount to be invested into regular purchases of a target asset in order to reduce the impact of volatility on the overall purchase. The purchases are made regardless of the price of the asset and at regular intervals. In fact, this strategy removes much of the detailed work that tries to time the market to make stock purchases at the best prices.
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What happens when leverage comes back into play?
When greed returns and there is leverage, people will take advantage of it. What will happen then? Go back to the LeClair chart and look at October 2020, the last time leverage was in the red. Could we put in a run the size of what followed? The graph presented by this pseudonymous analyst suggests this.
# Bitcoin weekly candles are similar in size to the run from 11,000 to 19,5,000.
At 19.5k we had serious resistance for a couple of weeks (like now at 42k). Then it went to the races and the price tripled.
Tripling from here is 120k. pic.twitter.com/1gBFbM00MX
– Kevin ₿ebee (@kevinbebee) August 6, 2021
We could be on the cusp of a historic moment. The indicators and traits seem healthy and ready to go. Community morale has been high despite the recent regulatory threats. If all of these analysts are right … see you on the moon, cops!
Featured Image by Comfreak from Pixabay - Charts by TradingView