Well it’s Friday and Bitcoin torched it this week. So we will try to have fun today! Sarcastic fun. In this chart the white line is Bitcoin and the yellow line is combined balance sheet of G3 Central Banks:
We believe G3 balance sheet of central banks, interest rates, and the DXY are the tell tale signs of where Bitcoin will go, before it does anything. Like Gold and Silver, Bitcoin is a hedge against inflationary tactics central banks have been engaging in, massively, since 2008. The difference between Bitcoin and Gold/Silver, is many more people trust the provable scarcity of Bitcoin, and it is a much smaller asset class. Therefore, not being manipulated like Gold has been. Bitcoin has the potential unlike Gold/Silver, to be adopted by central banks to back up digital currency, or to actually be the central banks digital currency. The upside is exponentially bigger. Here is another chart showing how the breakout is ascending up but not out of control. It appears as a stairstep climb. When it starts looking like an elevator straight up, then we should start getting nervous:
The stairstep will take a year maybe longer. It will likely end in a prolonged elevator ride to the top. We will ladder out in 20% increments before the blow off top. We are not riding it down to the bottom! We will leave in 10% or perhaps 20% and play that by ear. Neutral ATM is getting everyone off of zero Bitcoin and helping them dollar cost average into it and ladder out of it as necessary. Always leaving some in to ride. Then we plan to buy back in during the bear market when Bitcoin hits the 200 day moving average. We are patient. We think long term, we do not let emotion get in the way! Here is the Stock to Flow model update:
Notice where the future trajectory black line, in late 2021, goes horizontal. The scarcity causes Bitcoin price to ride up nearly vertical, the last month or so of the bull run. The horizontal line is at $100K. When considering the money printing, and expecting more of the same in 2021. It is very reasonable to expect the bull market to hit $180K to $220K at its peak in late 2021, or early 2022. Remember this visual!:
When we pull back the curtain, the Fed is pulling the strings and levers, manipulating the stock market. The problem is this debases the US Dollar. Thus, Bitcoin is the hedge which brings freedom to so many. See this article, about the financial freedom happening in Nigeria thanks to Bitcoin, click here to read.
Neutral ATM is here to get everyone off of zero Bitcoin.
Give Neutral ATM a try. We have low rates, convenient locations and we are expanding. Contact Neutral ATM, we will answer all your questions about Bitcoin and using our ATM machines. Find a Neutral ATM Bitcoin machine location near you.