This is the only bitcoin chart you need to see to understand that the next big bull market is upon us.
I’ve been watching it for months, and it’s exciting to finally see it breaking out after what’s been a multi-year consolidation.
I genuinely believe this bull leg could see price reach, and likely surpass, $100,000. Yeah, I know… my wife thinks I’m nuts too.
Although the only thing you need to understand are the technicals from that weekly chart, it’s worth taking a step back and answer the “why now” question.
The answer: Greed.
The more in-depth answer: Yield farming.
To better understand yield farming, here are a couple articles on the subject here and here. I’m not going to pretend I fully understand it, and I have zero interest in it beyond its ability to be a catalyst for bitcoin’s next bull leg.
When it was clear that the last bull run had ended back in late 2017 I was pretty active in crypto. I spent a fair bit of time talking with other folks about it online, and we often debated what would be the catalyst for the next bull run.
My opinion was that we didn’t know what it would be, but it ultimately it would be greed. While the die hard bitcoin narrative is a movement against poor monetary policy, money printing, and inflation, the reality is that has yet to play out. Every big bitcoin bull leg has been driven by greed, or get-rich-quick schemes.
First there were altcoins (2011), then there were altcoins with ICO’s (2017), and now we have yield farming. It’s the same old story dressed up as something different. And I may be missing a bull leg there; I’m sure a more versed crypto historian could fill in the blanks. But I’m 100% sure they were all driven by get-rich-quick hopefuls.
I don’t say that negatively. I love it.
Ultimately, it has been these schemes that drive bitcoin higher and, in turn, drives bitcoin further into the limelight. Perhaps they are ultimately responsible for bitcoin fulfilling its original narrative.
But for now, who cares? The bull run is starting and it’s time to get on board.
How to play it? Buy spot bitcoin on Coinbase or Gemini and just hold it. Add when you can. It should be a hell of a run.
For me, I’m taking a more aggressive approach. I put $10,000 into a trading platform early this morning, leveraged it 10x to buy $100,000 worth of $BTC at $10,300 and plan to just hold it as long as I can stomach, maybe even adding on dips.
Leveraging 10x sounds risky, but the way I see it if bitcoin trades back to ~$9,000 at this point it’s a failed break out. I think that’s highly unlikely given the overhead resistance we’ve crushed the last two days.
I’m perfectly happy risky $10,000 for a potentially massive payday (assuming I can hold on for the ride) when I see the odds drastically stacked in my favor.
Should be fun.