Bullish Responses To Bearish Developments
Even in the light of a sprout of negative developments, BTC has been astoundingly resilient. Bitcoin has shaken off the Bitmex saga as if it was a momentary wobble. The Crypto derivatives crackdown in the UK has seen zero affect on the price of Bitcoin. It seems as if the magnitude of bullish factors are finally coming together to create a force to be reckoned with. However, the broader market is laced with uncertainty in the wake of elections and a possible second wave stock market crash.
Things are not looking good for traditional markets, even as growth starts to slowly improve in the economy. The reality is that this is a long-term recovery path! There is no shortcut solution to the matter at hand, despite what Jerome Powell would have you believe.
The irony though, is that even though all of this is very bullish for Bitcoin in the long-term, in the short-term it does have the power to hurt Bitcoin. A second wave market crash will not leave BTC unscathed, no matter the bullishness and this is what we need to consider and be constantly aware of.
The Cycles Are Becoming Longer
As the Bitcoin market matures, it appears that the cycles are taking longer to play out and I believe that this is fooling many market participants. When traders do not see movement in the expected time frame they flip bearish. This dynamic is most likely setting up a massive bear trap, that could actually fuel the initial stages of the "true" bull market.
What we are currently seeing is very bullish but it is by no means an actual bull market as of yet. BTC is still below 12K and the massive resistance at 13.8K still needs to be conquered.
I have discussed numerous dynamics and factors influencing and affecting the BTC price in recent articles and when one takes into consideration the recent price action, it definitely does appear as if the puzzle pieces are coming together.
Litecoin is often considered a leading indicator for the Bitcoin price and strangely enough has been unaffected by the recent altcoin dump. Litecoin has managed to slip into the shadows of late amidst DeFi and NFT hype but don't discount it. I will be watching the LTC price in the coming days and weeks.
As I said before, the only true obstacle that I foresee is another stock market crash. I cannot jump aboard the 3K boat, as there is simply no validation or indication of such a move. Continue to monitor and process the data at hand, as this is the only true compass you have.
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