Bitcoin has finally chewed through the support level that we had been sitting on for a couple of weeks, showing that Bitcoin has nowhere to go but lower.
In fact, we managed to slice through the $25,000 level without blinking. This is not a good look, and it’s very likely that we will continue to see Bitcoin collapse. At this point, the $20,000 level is the next target. The $20,000 level will bring on the next major fight.
That being said, the market is likely to see the $20,000 level broken, and at this point I think it’s more likely than not that Bitcoin will find $12,000 in the next few months. Bitcoin, and the rest of the crypto market for that matter, is dead money, and the only thing you can do at this point is to short it with massive amounts of leverage, but timing will be everything. Bitcoin has no real possibility of recovery, at least not until the Federal Reserve changes its monetary policy. It’s very likely that could be a few years down the road.
If you do like Bitcoin, then waiting for stabilization might be the best way to go. If you remember a few years ago, the “crypto winter” had Bitcoin hanging about the $3000 level for ages. A lot of people spent quite a bit of time compiling a larger position in this area, essentially “stacking coins.” That might be the next serious major trade, but right now there’s nothing positive about crypto, not even Bitcoin which typically is favored over all of them.
There has been a significant amount of fraud found in the crypto world, and therefore it’s going to take a long time for confidence to build back up in order for people to put money to work. Confidence is something that can be destroyed quite quickly but takes forever to build back up. The market more likely than not has a long way to go, so I believe that even if I do start buying Bitcoin, it may be some time in 2023, maybe even 2024. I have nothing good to say about this market right now, a least as long as the Federal Reserve has no interest in trying to change its course of policy. The world economy is in serious trouble, so people won’t be gambling with imaginary coins.