On Wednesday at 2 the FOMC meeting starts. At 2:30 Fed chairman Powell speaks. Below is a chart showing the SPX dropping to the support at last October’s lows:
This is a warning to the Fed. Blackrock chairman Larry Fink warned the Fed last week not to get too hawkish with rate increases. Remember, 2022 is an election year. Neverthless, Bitcoin also dumped to $33K this morning early. We bought the dip! We will buy more today as well. We think it could drop to $30K and we may delay our second buy for that to happen. But, usually we don’t hold for long. Not worth it! There is massive support for Bitcoin between $30K and $31K. See this chart showing the support at the .618 fibonacci support level:
Then consider the illiquid supply of Bitcoin right now. The gap between price and the illiquid supply level in Bitcoin, which is the amount of Bitcoin being held and not sold, has not been wider than this. Whatever bottom Bitcoin finds and bounces off of is likely the launch pad for the second leg of the bull run! See the illiquid supply chart below:
Historically, Bitcoin has bounced off of drawdowns, or dumps of 50% or greater for many years. In the following years there have been 50% dumps, 2011, 2012, 2014, 2016, 2018, 2020, 2021. Riding the volatility out and buying at each bottom is the best move you can make. Welcome the volatility, buy these bottoms! This has worked really well for us, and it will work for you: