With one of the reddest times in the history of cryptocurrency, we have Bitcoin down 50% in the past 72 days, as of right now. This is comparable to a major collapse. What a bloodbath. Those with fiat to spare must be so happy to buy the dip, like El Salvador just did for example.
All our favorite altcoins have likewise been pulled down along with Bitcoin. I’m sure many investors are feeling the max pain right now as they see their portfolio chopped in half and profits fly out the window.
Not to worry though as this is about to end. The bottom is in sight in the coming week, in my opinion, and that of others more expert than me in technical analysis. We still have the rest of the bitcoin bull market cycle to go. It hasn’t passed the fabled $100k yet, so the bounce to the upside from here is going to look awesome to say the least.
The RSI on the daily bitcoin chart is showing oversold and down at 20, which is even lower than the last time this occurred, in mid May last year. That’s eight months ago. The only other time the RSI was lower than today was at the Covid crash of March 2020, when the entire economy crashed across the board.
That’s how bad this crash is today, one that has been crashing for over two months now, in a steady decline. I hope no one is selling at a loss. Just HODL and wait for the retrace to the upside. We’re basically back at the price of bitcoin that we were at one full year ago. The entire year’s gains have been wiped out.
I’m not too worried as I know the bull market cycle is still on the cards for all cryptos – barring a black swan event. It took just such an event to crash us during the Covid dump of March 2020, but this time is appears to be a steady slide to the downside, with little bits of FUD along the way, like the Russia ban this week and the FED pretending they will taper the money printing and raise interest rates. We shall see if they can deliver on that of course. I doubt it.
You can’t taper a Ponzi scheme and you can’t witch off the QE any more. They have gone too far with the printer going Brrrrr... Let’s hope crypto can decouple from the stock market, though it appears not. After all, crypto is more of a riskier asset, so it will always be more vulnerable to mainstream financial shake-ups.
Some say China is also collapsing financially, we just don’t know it yet. Others say 2022 will bring the next great crash, much like 2008 and 1929 but then those rumors are always around, so we shall see. On one side we have the FED propping up the dying dollar and on the other we have the CCP propping up China. Both look shaky right now.
Perhaps this is all an engineered part of the Great Reset, where fiat is ended and CBDCs introduced. Crypto unfortunately is still at the mercy of the mainstream markets by the look of it. But this time around so much institutional investment is involved in crypto. So much fiat is still waiting in the wings to deploy right now, probably buying this dip. Bitcoin is mainstream now.
We will still see our $100k Bitcoin and beyond probably before the year is out, and I am hoping before Q1 2022 is out. Even if the models are broken and stock-to-flow or PlanB seem wrong now, still the show will go on.
The previous bearish correction in Bitcoin from April to July last year was also around 55%. This time we sit at a 50% dip in a similar amount of time, so it’s nothing new and the bullish climb back to ATHs is imminent. That’s my opinion. So buy the dip and be ready for massive gains. The future looks rosy.