BTC has the right setup for a violent move higher
Bitcoin is likely to move sharply higher in a short period of time
Bitcoin has all the right stuff for a violent move higher in the coming weeks or months.
With the price already at new all time highs before the stimulus money actually hits the economy the path of least resistance is going to be up.
The entire market cap of bitcoin is worth a little over a trillion dollars at $60k.
Well, we are directly giving American Investors almost half of that.
With market reflexivity being many multiples, all it will take is a fraction of that coming in to double the price of bitcoin.
What I mean by that is lets say $800 billion is going to the general public, if just 10% of that goes into bitcoin, which is $80 billion and the market reflexivity multiple is something like 20x, like some are indicating...
That would be 20 x $80 billion, which would be $1.6 trillion in market cap appreciation...
So, if just 10% of this stimulus money goes into bitcoin we could see the price double...
This chart is pretty much saying we are about to see a moon shoot very soon:
(source: https://twitter.com/Negentropic_/status/1371195692161626112/photo/1)
This may be more like 2013 than 2017 where we see a blow off top in early summer followed by months of consolidation, followed by the really big blow off top in December or January.
Stay informed my friends.
-Doc
Why is there the 20X multiple? Because of leverage trading?
Good question. Most likely has to do with thin liquidity during bull markets. IE people don't want to sell, so a little bit of buying moves the market up.
It is interesting how that works..... suddenly when stuff really starts to climb people don't want to sell. Plus stuff starts breaking. I mean how many times has Coinbase went down when prices are shooting up. Then the networks get congested as well making it harder to move coins.