Bitcoin Poised to Kickstart the Next Cycle with a Giant Monster Candle: Crypto Analyst
Today, Bitcoin dipped to $17,930 before bouncing back above $18,000 following yesterday’s dump.
The volume is low, and the market is currently in the red, but according to one analyst, “We are in the very final weeks of Bitcoin's current Four Year Cycle.”
According to his analysis, the next cycle will give us the giant monster candle, which during the last bull run occurred in 2017, taking BTC from about $700 to the all-time high of $20,000.
Following the explosive October and November, December is turning out to be a month for correction and sideways action.
As the price of Bitcoin tries to find the direction it wants to move in, the network metrics are also showing weakness. The transaction value has eased back down to $22bn, and “the more people that exchange value, the higher the Bitcoin price will be,” noted Charlie Morris of ByteTree.
After amassing over 600,000 BTC, institutional investment flows also waned with the next upturn expected to “coincide with the long-awaited $20k breakout.”
Keep the Money Coming
While the largest cryptocurrency is taking a rest after rallying for the last two months to a new high, the stock market powered up. On Wednesday, S&P 500 surged to hit a new peak at 3,710 before falling to 3,660 the same day.
The US Dollar Index meanwhile continues to trade under 91 ever since its fall on Nov. 30. On the other hand, Gold has recovered from its loss to $1,760 as it makes a strong comeback to around $1,850 in these last 10 days.
These movements have been in response to the coronavirus stimulus package of $916 billion, which Congress continues to negotiate over but with no clarity.
Unlike the European Union, the European Central Bank has unleashed €500 billion ($605 billion) in new stimulus to prop the economy as “uncertainty remains high,” as per the central bank’s statement on Thursday. With this, the total stimulus program comes to 1.85 trillion ($2.24 trillion).
With the government's money printer going brrrr… “it's a bit silly to speculate on which one exactly will fall the fastest. However, it can be a good way to diversify your portfolio and drastically reduce risk,” wrote analyst Mati Greenspan in his daily newsletter Quantum Economics.
And this is why everyone is jumping into crypto. “Wall Street is quickly realizing that having a minimal exposure to crypto assets can be very healthy for your overall portfolio,” said Greenspan.
Wang Xing, CEO of China’s third-largest internet company Meituan is also into Bitcoin, as revealed by a Chinese publication.
Xing, who has previously said that bitcoin could be the biggest transfer of wealth in human history, recently revealed that he owns BTC adding, “I just think bitcoin is an awesome idea, the kind of awesome that is destined to go down in the history of human civilization.”