Bitcoin rallied on Wednesday, pushing up above the $36K level to print a new ATH before settling the daily candle near the highs. Bitcoin's exuberant at this point as we haven't seen a notable red candle since November 2020. At some point Bitcoin will correct, but it's simply irresponsible to not be long Bitcoin right now and in the future.
(January 6, 2020 7:30PM EST)
Bitcoin rallied again, cruising to another new ATH as a tidal wave of money flows into crypto, rising the tide of the entire space. The bullishness is back, though this time it's largely driven by institutional investors as opposed to retail. Though that's not to say retail isn't involved: crypto has been 95%+ (maybe more) retail from 2009-now, and new retail continues to come online every day through exchanges and old platforms with new crypto offerings such as PayPal, Square, and more. I think this is indicative of the general trend, sentiment, and direction of crypto over the next few years - longer. In the grand scheme of things, we're early, even now at $35K. This time next year, we may be thinking to ourselves "I wish I had bought more under $40K." Demand continues to not only climb but exceed the amount of Bitcoin mined daily. With so many philosophical Bitcoin HODLers who will never sell, that leaves the remainder of Bitcoin owners to determine their sell levels, which will likely be much, much higher. It's a zero-sum game; that much is guaranteed by Bitcoin's decentralized network, governance, and programmatically deflating monetary supply.
Going forward, look for resistance around $40K, then $50K, which is our first "major" target in this bull run and a significant "checkpoint" on the way to a six-figure Bitcoin price. The path of least resistance is up; don't try to fight it unless you're a degenerate gambler willing to get burned. As this point I'd put support around $30K with stronger support around $25K down to $20K. There will be a retracement at some point, though possibly not until Bitcoin hits $50K at which point a rejection there at resistance may inspire some profit-taking enough to stimulate a short-term correction. If you've been in crypto for a while, you know that moves tend to be exaggerated in both directions due to the volatility and heightened market psychology stages.
I think the best strategy going forward is to buy on dips, dollar-cost average on a regular basis, and even earn Bitcoin if you can. You simply can't short or even sell this market when all it does is go up over time. Sure, there are short-term fluctuations, but long-term there's no sense in missing out on this ride. This is truly the trade of the decade: if you're not in Bitcoin, chances are you'll be getting much worse returns elsewhere.
Support: Look for support around $25K down to the $20K level, though I think the lower your limit orders the less your chance of them being hit are. This is a seller's market; dips are bought and rallies inspire FOMO buying. Dips will continue to be shallow. At this point, $30K would be value, though I think we may get another spike lower into the high $20,000s so place your GTC orders accordingly.
Resistance: Bitcoin's going higher - no sense in trying to fight this trend. Look for resistance again every $5K: $35K, 40K, 45K, and then $50K. After that, we'll probably move in $10K increments.
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