Bitcoin Setting Up With Explosive Potential
Bitcoin continues to be my main focus as I believe it is setting up with explosive potential. There are few reasons why the term "explosive" comes to mind when looking at Bitcoin's chart. First, when we look at the weekly time-frame, we can see that there really has not been much distribution throughout 2023. This makes sense as those who wanted to sell most likely capitulated right after the FTX collapse. After bottoming in late 2022, Bitcoin really started to wake up in early 2023. Since April, Bitcoin has mostly been basing between the $25,000 and $30,000 range. This action can be viewed as constructive in helping Bitcoin form the right side of a very large base and is actually very similar to what happened in 2016 before Bitcoin broke out.
Finally, one of the things that really intrigues me about Bitcoin currently is that no one seems to care. When I see a chart setting up as well as Bitcoin is without much excitement, I know there is explosive potential. Why is that? Because when there is an instance where something is not fully understood yet and the majority is skeptical of its' potential, there is by definition loads of money sitting dormant on the sidelines. The skeptics and disbelievers are going to have a difficult time ignoring Bitcoin as it increases in price. This will cause those who want to own it to chase it at even higher levels and this will in turn push prices even higher. Combine that with the "hodlers" who refuse to sell and you have the recipe of a potentially explosive situation.
Risk right. Sit tight.
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Full Disclosure: I currently own Bitcoin and Ethereum.
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