The BTC/USD continues to go sideways as the market seems content to hang around the $21,500 level. There’s no real volume, nor is there any interest in owning Bitcoin now. It’s times like this where accumulation starts to happen and therefore big profits can be made, assuming that you can wait to get paid.
This is not to say that we are at the bottom, but I do know that a lot of longer-term addresses are starting to accumulate again, suggesting that we might be near an accumulation phase. If we break down below the recent lows from a couple of months ago, then it’s likely that we drop down to the $12,000 level. That’s very possible given the financial situation around the world. After all, Bitcoin has not decoupled from the S&P 500, and more specifically the NASDAQ. The NASDAQ is all over the place due to concerns about the Federal Reserve tightening monetary policy, and therefore so is Bitcoin.
What Really Matters in This Market
- Keep in mind that institutional money is what pushes Bitcoin around these days, so it’s going to act more like a commodity than anything else.
- Whether or not it has any real-world use is completely irrelevant to most people who trade it, nor does it matter to them who controls everything.
- What matters to them is whether they can make money trading it. That’s the very essence of crypto that we have seen so far, people trying to make money.
While this is not necessarily an indictment of crypto itself, it does give you an idea of the mentality behind this market. It’s about speculation, and not holding for the future like some people will tell you. Yes, there are maximalists out there, but they are such a small portion of the market that they hardly move the needle. At this point, every time we dip a few thousand dollars, they will be longer-term buyers and investors willing to get involved, because they are waiting for the next great bull market. I believe it’s too early to see that, but as soon as the Federal Reserve pivots, that’s where we start to see Bitcoin and other risky assets such as crypto in general start to take off. That will be your cue that the next bullish run has started.
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