I'm by no means a trader or a whale, however one thing is for certain; smart money always buys the blood. When there's blood in the streets, it's time to buy. Warren Buffet - one of the most famous investors of all time; One of his most famous quotes "Be fearful when others are greedy & greedy when others are fearful". This saying can be applied to any financial market; the human psychology doesn't change. I've been watching Bitcoin moon & crash for the last 6 years. It always seems to pump higher & dump lower than I expect. The reality is, the price has spent the last 3 years correcting from 20k. This upwards trend we're currently in, is clearly the climb that breaks the previous all time high. Yes, It's possible that it takes longer or shorter than the majority expect.
There are so many people out there who believe technical analysis works; yeah it's a game of probability - you're effectively gambling. Technical analysis generally works because everyone is looking at the same chart, however no one can predict a sudden demand with billions even trillions of capital in-flow. Things will eventually escalate without notice; the legacy system could go south overnight - Bitcoin could double or triple within 24 hours. No one knows what the market will do, if anyone tells you they can predict moves in the short-term, disregard everything they say. Long-term, all that needs to happen for Bitcoin to moon: governments continue printing & robbing people (they can't & won't stop). As more time passes, more will realize: the best way out is to convert to Bitcoin.
Over the last couple of days there's been a lot of fear surrounding government regulation - may or may not have contributed to this small dip. The fear is that they will ban self-custody. If they go ahead with this; it really just cements in my brain how corrupt that are. How controlling they are. They're trying to prevent something that benefits the individual. If they actually go ahead with this, they are banning human rights. It's clear they don't want you to have privacy either - unethical on so many levels. They are putting regulations in place that will create a dystopian future for all who use fiat. Get your coins off the exchange into a wallet you control ASAP. They're attempting to control Bitcoin like government money.
If they go ahead with this custody ban, it's just more a bull-case for Bitcoin. So many coins will be locked into exchange custody; which is a massive security risk in itself. There will be less velocity in the market, creating an even bigger shortage on the supply. The demand is clearly increasing too, so all of this is just more rocket fuel. Most people are unaware of this; once you have the coins in your possession, they cannot truly regulate your Bitcoin. It's far too costly to enforce regulations on a self-sovereign individual, especially if you Coinjoin/Lightning through your own wallet/node. A Bitcoin-circular-economy is going to emerge outside of the system - more & more people will become fed up with injustice of government money. There will just be more demand for P2P exchanges like Bisq & Hodl Hodl. No one can stop this. The privacy tech will only improve too, further increasing adoption & network strength. All news is good for Bitcoin at this point. It is already the victor. We just have to ride out all the nonsense. Strength in numbers, tell your friends.
The more you understand Bitcoin & money itself, the more your conviction towards it will grow. Dips don't phase me anymore; I sleep like a baby every night. Bitcoin was built for the very reason that is currently playing out in the world. 2021 is going to be a big year.
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