Tuesday, January 2, 2018

Crypto New Years!

Happy Crypto-Volatile New Year!

The Alt-Coins have been greatly outperforming Bitcoin during its bear market, but suddenly the tides have turned as the pros with the big money stepped back in to break Bitcoin back above its major trend line.  This sent all the Alt-Coins lower.

The rotation into Ethereum and other coins appears to have ended, and switched directions back to Bitcoin for now.  This is a very bullish breakout, here’s my Bitcoin chart, you can see the major downtrend line is definitively broken to the upside:

This likely blows up the bearish case, but now it needs to get over $16,500 to make a new high and confirm the new uptrend.  Bitcoin definitely leads, so I now expect it to run as people chase returns; then Litecoin, Bitcoin Cash, and the rest will follow.

Enjoy the ride, 2018 is going to be very volatile.  1.5% of the world’s population now owns crypto, that is going above 10% by the end of the year.  There is a TIDAL WAVE of new money to come.  Regardless of short term direction, I think $40,000 Bitcoin in the first half, $100k is possible by year’s end! 

Today’s move is a great example of why Bitcoin dominates.  Because you need to own it to trade for nearly everything else, once it starts up, then everyone sells in order to get better relative performance.  Thus I think “dilution” is true, but only in the sense that the entire space is growing by leaps and bounds.  Proof of that is that despite the recent Bitcoin bear market, the overall market cap of all the cryptos has been making new all-time highs.  

Again, Bitcoin is NOT THE BUBBLE, the dollar is.


PS - Proof of Big Boy involvement?  Goldman Sachs forecast for end of 2017 Bitcoin price was $14,000.  Ended midnight December 31, 2017 at $13,878!  Only $122 off.  Someone made money on that.  Next day, downtrend broken.  While I lament those participants, I also know that we all need to suck their money in - their bubble money is what will send the cryptos higher while diminishing their power and control in the process.  How?  Stay tuned, I'll explain.