Part 11/14:
Bitcoin has faced significant setbacks—down about 36% from recent highs—highlighting investor pain and overhanging supply issues, especially from major holders like MicroStrategy. The author candidly admits to being wrong about Bitcoin’s performance this year, anticipating a higher valuation based on the broader bullish outlook.
Despite the decline, history shows that Bitcoin and other risk assets often bounce when sentiment hits extreme lows. Levels like a sub-21 RSI or the Daily Sentiment Index suggest strong oversold conditions, creating opportunities for rallies—sometimes rapid and unexpected. The author has doubled and tripled down on Bitcoin during this slump, trusting that a rebound is ahead, especially as investor fear reaches levels seen during previous market lows.