Bitcoin saw a dip going back to January 6th when it hit the ATH of $41,983. This has happened in every bull market cycle. Let’s check the stock to flow model below:
We showed in two previous blogs how whenever the 20 day moving average crosses back above the 50 day moving averagen in a bull market we see price action trend back up. 20 day MA has been below the 50 day MA since January 6th. It is crossing again and we see price action starting to respond positively. Let’s look back at the 2017 bull run, we find 8 times there were significant pull backs, yet Bitcoin crossed in to positive price action and there were indicators at the blow off top as well. Here is the chart showing us these past pull backs:
Therefore, don’t worry Bitcoin had a bad month but it is not going anywhere. So far September 2020 and January 2021 have been large retracements. Yet Bitcoin is up 32% YTD and finished 2020 up 301%. So stay strong and don’t sell any Bitcoin. There is plenty of FUD and naysaying about Bitcoin. But it is a technical invention like the internet and automobiles the last century. Here is a reminder, in a tweet from what was said about automobiles in 1903, and how an investor ignored that and won big! Click here to view tweet.
Digital technologies have beaten analog technologies since the 80’s. Computers, laptops, cell phones, satellite TV technology are all examples. Now Bitcoin has the blockchain to create peer to peer, decentralized, constantly provable scarcity, and a difficulty adjustment to prevent attacks on the network. Bitcoin has a system operating for 12 years now, that has proven the network effect on adoption is upward, demand has eclipsed every other asset on the planet since 2009, and no border or central bank can control, or slow it down. The end result is Bitcoin may be volatile, but it continues to progress up and to the right on every chart. Every bear market finds a higher low, every bull market finds a higher high. The difficulty adjustment cannot be ignored. Without that Bitcoin would have been shut down many years ago as it does threaten all fiat currencies in the world. It brings power to the individual that invests in it and understands it. Neutral ATM is trying to get a better understanding of Bitcoin into the world. All of us need to work together to stop banks, central banks, governments from inflating away our currency. Bitcoin is the best tool. Hedge the inflation. Bitcoin cannot be stopped. Even if miners are shut down, the difficulty adjustment, adjusts the prime number and the remaining miners carry forward the blockchain. Regardless of outcomes. Bitcoin has outrun its enemies and already won the war of attrition. One miner anywhere in the world is all that is needed to carry Bitcoin forward. Yet inspite of bear markets Bitcoin has carried forward with higher lows and higher highs in every cycle. Today, in this chart we can see a break out. It may need to be retested and stay in this $38K range:
Yet, it appears likely and predictable that Bitcoin will breakout soon! The chart above shows us when it first happened. Neutral ATM is here to get everyone off of having no hedge against inflation which robs people of their savings.
Neutral ATM buys and sells Bitcoin as little as $20 at a time! You do NOT have to buy an entire Bitcoin. 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.