Why Bitcoin is Surging and How This Rally Is Different from 2017

Discussion in 'Cryptocurrencies' started by Daal, Nov 20, 2020.

  1. Daal

    Daal

    https://blog.chainalysis.com/reports/bitcoin-price-surge-explained-2020

    "Right now, the amount of liquid Bitcoin is similar to what it was during the 2017 bull run. But the amount held in illiquid wallets is much higher, currently representing 77% of the 14.8 million Bitcoin mined that isn’t categorized as lost, meaning it hasn’t moved from its current address in five years or longer. That leaves a pool of just 3.4 million Bitcoin readily available to buyers as demand increases."
     
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  2. MrRenev

    MrRenev

    Back in March 2020 Bitcoin fell more than 20% in less than 1 hour 3 times in a row.
    This was enough to scare all the baghodlers that were permabulls all of 2018 & 2019.
    There is a clear drop in discussions about BTC after March 2020. The bulls all left.
    This is how bear market always end.
    It does not 100% mean BTC will go to 250,000 now, but the current rally was likely, and it could continue.

    The last bull market ended in similar ways, and the big crash before the bull market was also violent selling in short time.
    More recently, silver did something similar.
    This is similar in many ways to silver this year & to Bitcoin in 2016.
     
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  3. Arnie

    Arnie

    I think Bitcoin is getting a lift as a true store of value.
    With the levels of debt, both private and public, it's just a matter of time for the shitstorm to hit.
     
  4. gkishot

    gkishot

    I have a sense that outflow of money from traditional asset classes into cryptos has something to do with a projected Biden's victory.
     
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  5. AbbotAle

    AbbotAle

    It's different because it's being slowly cornered like a corner we've never seen before.

    No new supplyis possible.

    No government Exchange can step in.
     
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  6. The only difference I see is more volume with not as steep of an angle. Last time it shot straight up, this time it's got more of an angle. It's a pretty risky time to buy if you haven't bought already, 20k is going to be the judgement price that sends us to heaven or hell
     
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  7. johnarb

    johnarb

    $20K is definitely a very important level, but I believe $40-$50K is a much better level to watch and surpass. That's when bitcoin becomes a true investment asset in the eyes of the big investors (i.e. II, HF's, UHNW, etc.) and btc needs to hold that level. $1T MC for bitcoin

    I think $20K is gonna get hit and surpassed easily within the next few weeks...
     
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  8. True, but IMO we are going to have some kind of resistance at 20k or sooner. We are extremely over extended on most indicators, and unless we have a pullback of some kind, then history will just repeat itself and we will head straight back from where we came from.
     
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  9. johnarb

    johnarb

    That's they thing with me, I don't have any charting skills, lol, but I do understand the chart is very steep for bitcoin, it's not sustainable.

    However, PayPal is somewhat of a game-changer, hundreds of millions of users, able to click on their phones and buy bitcoin, that's pretty amazing demand, and GBTC demand is growing even much more now. I actually question why bitcoin is still below $25K given those 2 reasons, and I cannot blame bitmex whales and shorters, anymore...

    A PayPal spokesperson stated, “Due to the initial demand from our customers, we’ve also increased our weekly cryptocurrency purchase limit from $10K/week to $20K/week.”
     
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  10. Yes, and lets not forget all the people who are FOMOing in right now, which could be why we haven't had a pullback yet?

    Also keep in mind that my previous comment was my best guess of how it's going to play out. Of course it was all technical analysis, and fundamentals always dictate what the charts are doing. But most professional traders will be looking at the charts and doing their own technical analysis and playing by the charts, which would probably be along the lines of what I said, but the question is, will technical analysis outweigh fundamentals? Also this is a perfect time for market manipulators to take advantage of the market.

    This thread reminds of this video I used to watch...

     
    #10     Nov 20, 2020
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