There are several reasons to believe that Bitcoin will never see sub $10k numbers again...
This may sound like a bit of hyperbole, but there a several reasons to believe that bitcoin will never drop below $10k again.
The first having to do with what we have been seeing over the last several weeks...
We've been seeing very large corporate institutions buying bitcoin.
We are not talking about a couple million dollars, no we are talking about hundreds of millions and billions of dollars flowing into bitcoin.
And guess what, many of them were buying between $10-$11k.
You can do the math from this chart to get an idea on the price these corporations paid for their bitcoin:
We are looking at billions of dollars flowing in around that $10k-$11k level which likely means these corporations are going to defend that price point should the price pull back towards it.
Bitcoin just keeps doing what Bitcoin do
The second major reason that we are never likely to see bitcoin below $10k again has to do with history...
After every previous halving event, the price of bitcoin saw exponential price gains.
Not only did it see exponential prices gains, but when it eventually pulled back 80% from it's peaks, it never got as low as the previous highs.
That means that should bitcoin breakout and have another parabolic move, the pullback likely never even gets back to $20k.
I am not sure that exact trend will play out again here, but even if it doesn't, for bitcoin to break below $10k again at this point, it would have to do something different than it has ever done...
(Source: ~~~ embed:1317075205374791681) twitter metadata:MTAwdHJpbGxpb25VU0R8fGh0dHBzOi8vdHdpdHRlci5jb20vMTAwdHJpbGxpb25VU0Qvc3RhdHVzLzEzMTcwNzUyMDUzNzQ3OTE2ODEpfA== ~~~
Also, based on the Stock-to-Flow model, bitcoin is going to start going up very soon, and it likely will never come back to the price point again.
That means corporations, past patterns, and stock to flow all are saying there is a very good chance we never see bitcoin dip much below these levels.
Based on the reasons above, I sure hope you loaded up below $10k. :)
Stay informed my friends.
-Doc
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The minute bitcoin is testing $12k all the way to $15k
Things will start going crazy.
The whole crypto market always looking for a reason
to grow and the temperament of the financial world
is prime for digital currency to continue to make a greater splash.
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Yep I agree. Unfortunately we are still going through growing pains, as evidenced by the latest exchange issues.
All valid points and a continuing of trends in place. The institutions, of course, is new but the others are just keeping with what occurred in the past.
There is no reason for Bitcoin to break from past trends.
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Yep exactly. There hasn't been any reason to believe anything is different at this point. The only thing that seems to weigh on people's minds is that the numbers and amount of money needed to get there seems rather large...
Yep, all these corporations are basically "strong-hands" x1000.
It is the job of a corporation to be a strong-hand and trade unemotionally & logically.
My reason for believing we'll never see 10k again is the doubling curve.
2020 Bitcoin Doubling Curve
Bye Bye $10k!
You will be missed :(
Though Mar and April kind of went against this theory... though it was due to a black swan event and then the price went right back above that line.
I still remember when people were saying steem will reach $100 by the end of 2018. Yeah... that went well. This prediction has the same potential :)))
how you sure
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