IT HELD! We need to see a reversal now! Wait for it! This is the channel it is in, and the support channel is in the chart below, from yesterday:
Here is where it is today:
There was a wick to $37,775. Now its $38,474. If Bitcoin pumps somewhat today from this level and closes higher. Look for another attempted break out from this descending channel which is 70% of the time, a bullish chart pattern. A dump to the support channel is not an end of the world scenario. Shorts are high amongst the open interest total. They can get liquidated. This is cheap Bitcoin!
Long term, look at the bullish news for Bitcoin. Google digital cards will allow customers to store Bitcoin and spend fiat, click here to read more.
See the chart below for all millennial portfolios. They are majority Crypto, which is dominated by Bitcoin. NFT’s, Metaverse, and Defi are also significant in Millenial portfolios. That generation is leading the charge to a digital economy. See this chart:
We have written about Metcalfe’s Law. The one thing holding it back from plunging Bitcoin into a parabolic run up to the bull market cycle top, is a lack of price action to kick off the network effect. The network effect is made up of consumers, merchants, miners, and entrepreneurs.
Miner capitulation is estimated to be at $34,000 at this time. Above that level, miners will hold Bitcoin 100%. Until miners capitulate, it is VERY likely, Bitcoin remains in a bull run. Here is Marc Andreessen on the network effect of Bitcoin, click here to view on twitter.
At this time we know the support channel held, Bitcoin is now $4,702 away from the miner capitulation level. Thus, the likelihood for a breakout, is high! Don’t panic!
This chart below is CPI year over year vs ZEW US inflation expectations: