It has been a long timing for bitcoin, but finally the tide is turning. Bullish times are ahead. I just hope that you are still around, and took advantage of the accumulating opportunity that was given. As it is those who maintain conviction, and take action during uncertain times that end up being the most successful.
Yes that is right, bitcoin has finally had a short squeeze and rose up to a price of around $39,000. While we still have quite a ways to go until bitcoin can reach it's all-time high price again, but it is looking much better than the situation that we were dealing with last week. Just a week ago bitcoin dropped to $29k, amid fears of the GBTC unlock sale, amongst an endless amount of other FUD that was being aimed at the bitcoin markets. All attempting to cause enough FUD to scare the market into selling; resulting in the bubble of this bull market bursting. The market and big players were shorting bitcoin heavily, and any attempt at recovery were all met with resistance and the price was eventually sent right back down.
But what caused the price to go up so much this time? Why was bitcoin able to surpass its obstacles this time around?
Well, the first thing that needs to be mentioned is that this situation has been building up for weeks now. We have been seen constant reports of bitcoin being taken off exchanges, miners have stopped selling, and the market was oversold. All things that point to a sudden and incredible bounce.
But there were still those pesky shorts that needed to be overcome, before this rally could finally return to the upswing. We needed a big new story that would cause enough instant hype that would cause the market to pump hard and instantaneously. The only problem is that those type of news announcements are few and far between. I'm talking the likes of Paypal beginning to sell bitcoin, or Tesla putting bitcoin onto their balance sheet.
And then we finally found our news story.
As it stands, this is merely a rumor of something that may happen, and there is no confirmation of anything. But, the heavy rumor of Amazon potentially accepting bitcoin as a payment is a big enough story that it sent the price of bitcoin upwards. Because the market was heavily shorting the bitcoin price, this price swing upwards led to a huge squeeze and then came the liquidations, which send the price even higher at a blistering pace. The bears were laid to rest.
Everyone who wants the price of bitcoin to go over $100k, and then to heights even beyond. For that to be possible heavy volatility is required. It is that volatility that will bring us down to lows that we had just felt at $29k, but it is that same volatility that will take us upwards as well. My conviction in bitcoin has never been higher. Since the price began to drop I have stay consistent and explained the reasons why there are so many reasons to be bullish. While it is difficult to remain positive somedays when your portfolio drops many thousands of dollars. You must always keep looking at the larger picture. Bitcoin was being dealt an unprecedented amount of FUD attacks that kept coming one after another, and often times they were being dealt at the same time. These were tests for bitcoin and it passed wonderfully. Some of those same obstacles it might not have been able to overcome in its life infancy.
And then you have the whole world situation. Covid, unlimited money printing, inflation rising at an unprecedented level. Then you have El Salvador making bitcoin its legal tender, the Lightning 2nd layer really beginning to take off, the miners leaving China. And always inching closer to another halving. This storm isn't going to stop. I just hope that you have been able to take advantage of bitcoin being at a 50% discount.
Like I mentioned before, we are still far away from matching the all-time high price, but today is a day that gives hope to those that may have begun to think that the bull run was over. Today is a day that shows that the people who were proclaiming that the bull run wasn't finished, may just have been right. But the biggest change of all is what this has done to the mood of the entire market. The mood is an incredibly powerful thing that controls where the price will go. Last week it was incredibly bearish; people were scared and depressed. But that has now been erased and we are moving back towards positive movements.
It's an exciting time to be in the market. Remember this the next time that you being to feel doubt. Never take your foot off the gas pedal in your accumulation, and always dollar-cost-average no matter what.
How about you? Has your mood shifted thanks to this movement? Were you able to take advantage of the price dips the last few months and grow your bitcoin holdings?
As always, thank you for reading!
Unfortunately, as it turns out the Amazon story was apparently "fake news." That being said, at some point I do hope that Amazon, and other large retailers start looking more into Bitcoin and other crypto. It's the ease of use and spendability right now that I think is the biggest hurdle for any of these coins.
Interesting take on the run up.