Bitcoin will be declared death ,volatility will decrease, might see a flash-crash below the 200 Weekly Moving Average. Corona will be blamed for the crash. Similar structure from 2015 will play out this year.
When all are bearish, there is cause for prices to rise. Munehisa Homma
The orderbooks become thin and dry up. For the bigboys 100 Million is nothing. Absolutely chump change. The bitcoin market correlates with the traditional markets, the same forces that push/pull the traditional markets are the same forces that push/pull the bitcoin market. Ex-wallstreet, bankers. At some the two forces ying/yang have to come into equilibrium, otherwise the concept of a market would cease to exist.
Like any reasonable sized market, the majority of the bitcoin or shares are held by the institutions (smart money). For example, Nike $NKE, Institutional shareholders managed to capture 85% of the shares. The amount of bitcoins held by institutions is far larger, 96%
Don’t sell. We’re in the accumulation stage. The most profitable miner Antminer s7 will roughly break even around $3200 per bitcoin. Due to difficulty adjustments it’s hard to put a price on cost of production.
As for stocks : Smart money confidence is now at a all-time-high. They are buying up your inventory.
- Mean reversion to the long-running 200-weekly moving average.
- Law of large numbers is playing out. Bitcoin is slowly moving back to the 200-period moving average. The probability of a another bounce from the 200 WMA is high.
- Lower highs on the weekly.
- Sentiment will turn extremely bearish.