Couple reasons why:
- The amount of trade volume when Bitcoin dropped below 19k was extremely high which means a strong floor has been established.
- Miners have started accumulating Bitcoin again. As the price started dropping, miners started liquidating some of their Bitcoin to help pay for the increase in operational expenses like energy costs.
Should we break below 18k, the next area where there is high historical volume is around 12k.
IF Bitcoin reaches the 12k level, I don't see it going much lower.
Don't forget, these prices are simply short term noise.
The fundamentals of Bitcoin are still the same when it was 68k months ago.
- Hardest money ever created
- Limited supply
- Transparent and predictable monetary policy
- Easily transportable
What's changed?
- Many economies are nearing recession
- Inflation has run rampant everywhere
- Investors are liquidating their perceived riskiest assets to pay down bills and debt
- People are fearing a food shortage
Things are bad.
But its during these periods of fear and low growth that the most money is made.
How you may ask? By positioning yourself for the next run.
As the world realizes how broken our economies are,
They will find Bitcoin.
As wealth flows from the older generation to the younger who are much more technologically adept,
They will find Bitcoin.
And as governments realize they have a clear path out,
They too will find Bitcoin.
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