Bitcoin environmental impact being a big concern on Bloomberg, while the military industrial complex spends $4.6Billion per year on fuel, is a bit hypocritical is it not? Neutral ATM gets frustrated by the environmental hypocrisy in the main stream media.
We will call it out when it is found. Not to mention 160,000 terra watts/ year of power are produced in the US. Yet, Bitcoin mining can use up the 60% of that power, that is wasted each year. Bitcoin mines shut down natural gas flares! Thanks to Dan Held for this picture above. This environmental FUD (fear, unbelief, doubt) has been prevelant in the media for almost a month. There is a conserted effort afoot. More on this below. The next chart is the MACD, and we see a cross on the chart which is bullish:
Charts give signs or precursers to what is about to happen. MACD is a strong indicator. There is more bullish news in the charts. This next chart takes more explanation, but it is critical. Retail Institutional Investors (Fidelity, Black Rock, etc) are selling free profit and driving down the Bitcoin price. Why? Institutions will sell free profits from past positions to capture profit and drive down the price to create long liquidity. This liquidity creation will allow more Institutional (Whales) Investors to take out stop losses, drop to new lows, and create more sellers. Every long position needs sellers to create, or set, the long position. Institutional Investors driving down stop losses creates a cascade of selling for lower long positions, in the near future. Setting up a lower long position, sets up long liquidity. Eventually, that long liquidity will create Bitcoin supply shortages. When that happens, we will begin seeing seller exhaustion. This explains the Elon Musk tweets a few weeks ago, taking out stop losses, seting up long positions. Buying lower dips as the long position takes hold. Here is the chart:
The above explanation and chart explains this next chart. So, once long liquidity is set up, the trend moves to more buying than selling. In the next chart, we see Bitcoin supply held by small retail investers. These are small wallets of 0.01 – 0.1 Bitcoin. They could be customers of the institutional investors mentioned above. Retail, according to this chart, has executed their play of creating long liquidity, and now is beginning to turn into a buyers market. There may remain some jockeying back and forth for a few more days or even weeks, but the supply shortage and the wealth of buyers (due to long liquidity) will soon create another leg up. Here is the chart:
We have been saying for about six weeks now that we expect a turn in the market but we don’t know when. Now, we have seen additional evidence, based on research, that this consolidation does’nt have much life left in it. Is that life 3 days or 3 weeks? Hard to say, but it won’t be much longer. Timing is impossible to guess perfectly. But trends show up in on chain analysis. This is not a trend reversal. We WILL have one, probably near the end of this year, but this is not it! It gets emotional reading the FUD in the media, but resist the urge to sell into the long liquidity being created by institutions.
Inflation is here and getting worse. The Fed will likely add $6 trillion to the money supply, once the Biden proposal is voted on later this summer. Inflation will increase, which pushes the Fed to do more to control the yield curve. The more they print, the more inflation hedges look attractive. Gold is up, yet Bitcoin is still down in May. June may be the month this re-accumulation breaks! We will see, if it takes until July, it is worth the wait. Don’t sell, trust the fundementals. There are several more months left in this bull market!
Neutral ATM buys and sells Bitcoin as little as $20 at a time! You do NOT have to buy an entire Bitcoin. Our OTC Desk is coming online soon, low rates, buy or sell online 24/7/365. Neutral ATM is here to get everyone off of zero Bitcoin.
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