Where is Bitcoin Headed?
Although we are still a long ways away from the crescendo of market genious's calling for Bitcoin to return to its all-time highs we might wish to examine where I think that this computer-generated code of money is headed.
As you analyze the chart below you can see that we indeed have broken through a long time downtrend line.
Now does that mean the worst is over for Bitcoin moving lower?
Hardly. I tend to think like Buffet on this one now that it is traded on the open exchange. it is headed to roughly where it started before this downtrend is through. Now, this may take another four or five years but I suspect that is where this is headed.
We have already talked about Bitcoin being money and to those that missed that post all you really have to know is that "yes", it is money. Not a very good form of money but it is indeed money. Bitcoin over the next decade will be replaced by a new form of currency that will be generated by central banks. That is if the whole shebang isn't reset over the next year or so to reflect a proper monetary system. The present system is bust. There is no grey area there. The only thing that will happen with the current monetary system in place is that the ultra wealthy will get wealthier with interest rates where they presently are.
However, Bitcoin and its value as an investment have come and gone. You will never see 20K a coin again or even close. You can quote me on that and I am not one to make a stand ever but in this case, I have no problem going out on a limb. If it cracks 10K again I will be shocked.
No, I think this little bounce will carry it to as high as 6.5K where it will return to its previous low and slowly make its way back to perhaps 1 dollar a coin over time. Am I suggesting you get in to ride the wave back to the 6 to 7000 area?
No, I am not.
The smarter trade is to the downside from those levels with a stop above 8000. That is what I will be waiting for. When I take the trade I will let you know. However, that is not any time soon. Take the trade between the two lines I have drawn with your stop at the far end. Cheers!
As you analyze the chart below you can see that we indeed have broken through a long time downtrend line.
Now does that mean the worst is over for Bitcoin moving lower?
Hardly. I tend to think like Buffet on this one now that it is traded on the open exchange. it is headed to roughly where it started before this downtrend is through. Now, this may take another four or five years but I suspect that is where this is headed.
We have already talked about Bitcoin being money and to those that missed that post all you really have to know is that "yes", it is money. Not a very good form of money but it is indeed money. Bitcoin over the next decade will be replaced by a new form of currency that will be generated by central banks. That is if the whole shebang isn't reset over the next year or so to reflect a proper monetary system. The present system is bust. There is no grey area there. The only thing that will happen with the current monetary system in place is that the ultra wealthy will get wealthier with interest rates where they presently are.
However, Bitcoin and its value as an investment have come and gone. You will never see 20K a coin again or even close. You can quote me on that and I am not one to make a stand ever but in this case, I have no problem going out on a limb. If it cracks 10K again I will be shocked.
No, I think this little bounce will carry it to as high as 6.5K where it will return to its previous low and slowly make its way back to perhaps 1 dollar a coin over time. Am I suggesting you get in to ride the wave back to the 6 to 7000 area?
No, I am not.
The smarter trade is to the downside from those levels with a stop above 8000. That is what I will be waiting for. When I take the trade I will let you know. However, that is not any time soon. Take the trade between the two lines I have drawn with your stop at the far end. Cheers!
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