BTC - Consolidation TimesteemCreated with Sketch.

in bitcoin •  5 months ago 

Bitcoin looks to be ready for a breather

After a big move up, things look to be calming down a bit for king bitcoin.

Some see the recent drop in prices (from $8,900 down to $8,600) and start to worry that the run is over and that it's now tank time for ol bitcoin.

They could be right, but most likely it is just some consolidation before the next move up.

Basically we are going to see something like this play out:

(Source: https://twitter.com/____Thrasher__/status/1217623738675531776)

Some sideways chop and then eventually a breakout of the consolidation rectangle.

Most are hoping that the breakout will be to the upside, which is that first squiggly line on that chart above.

But, even if it breaks to the downside I wouldn't say all is lost...

I still think we are going to see a decent sized rally prior to the halving, rather we breakdown here or not.

Which will then eventually be followed by a decent sized correction.

However, I think after that is over we will ultimately see the euphoric blow off top rally that takes prices well beyond the previous all time highs.

A famous saying in traditional markets that is also applicable to crypto is this:

"Remember, prices tend to take the stairs on the way up, and the elevator on the way down."

Meaning that prices tend to move up slowly, build a base, then move up some more, but when they go down, it often happens in a straight line.

The reason I say that is because we will see dips and rips all the way up, but we will likely also see higher lows along the way.

Don't get scurred out.

Stay informed my friends.

-Doc

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I'm really convinced that we've seen the bottom in Bitcoin. I've heard talk from people I know IRL and online pundits alike that BTC may be on its last legs. Many new cryptos are more efficient and faster for transactions, so one or more will overtake BTC they say. Then we've got the whole Craig Wrong saga faking people out in the markets. When the smoke clears on the BSV scam and/or we see more sabre rattling by politicians on the world stage, I think BTC will rally hard. May take up to a year for that to really take off though.

You know, people have been right about bitcoin not having the best tech for the last 8 years or so... but guess what? It hasn't seemed to matter. People buying bitcoin seem to be buying it more as a store of value, non-correlated asset that offers asymmetrical returns. It is the most decentralized and most secure of any network out there. Bitcoin may never work as a means of every day payments, but I don't think people are buying it for that. Gold is worth $8 trillion currently and no one buys anything with it. The fact that bitcoin doesn't change/adapt much can be seen as a feature more than a bug. People don't want the rules changing on them all the time if they are investing. Which might be part of the problem with steem... we change the rules of the game every couple of months it seems.

I watched an Andreas Antonopoulos video recently that explained exactly why it doesn't really matter if slightly more efficient projects emerge. He compared it to introducing rabbits to Australia. Now there are rabbits everywhere; they found the niche in the environment and their population exploded out of control... you can't uproot them by introducing a slightly more efficient animal; they're already entrenched into the environment. Bitcoin is also entrenched. It was never supposed to be the best solution or even a good solution. It's "good enough". That's all you need with first-to-market advantage.

Also all these other coins that come out aren't superior to Bitcoin in the least bit. There are trade-offs, and these other coins are sacrificing some other vital attribute in order to achieve higher scaling, throughput, and efficiency.

Very true. I guess saying they are superior is just a quick way of talking about the trade-offs. Superior perhaps in the way that some people think when they talk about a useful currency. Which is something I have talked about many times, I don't think bitcoin will really ever be. One that can be used as a currency, sure, one that is widely used as a currency, probably not. More like a settlement layer that where value can be moved rather easily.

I think people's need for Bitcoin to be a currency is misplaced. Just because we call it cryptocurrency because developers aren't very creative doesn't mean we need to force that ideology onto the network. The same can be said for all the perceived competition that doesn't exist in this co-op. Bitcoin can do its thing and something else can be a better currency... and that's fine. I feel like there's a lot of unnecessary bickering to the contrary when it comes to projecting competition onto the open-source sphere.

Another issue is the one of cornering the mining market. Bitcoin takes the lion's share when it comes to network security using POW. I think a lot of people mistakenly ignore this fact when it comes to considering other POW coins. Security matters a lot more than people give it credit. One of the nice things about POS and DPOS is that the security of one project has no effect on the others.

Wake me up when moon.

You might not wake up until end of 2021... depending on your definition of moon.

Btc bkal terbang

Looks like another wedge might form between the 8800-8600 levels.
I'm expecting it to balance out to $8700 over the next 3 days before it's ready to spike up again.

Yep, I could see that as well. Consolidate between $8,500 and $8,900 for a bit here, then possibly a move up.

After seeing BTC's strong surge, a healthy correction is expected, and I think the pessimism from certain circles is a exaggeration. There's more to come soon, and the recent pullback will give traders and investors some time to breathe before embarking on their next run-up :D

Yea I am not sure how anyone could be pessimistic at this point. We have broken above just about every moving average. The charts are clearly flipping. Plus we have the halving right around the corner. Short term corrections sure, but they likely need to be bought instead of sold.

It is really a big rally, over the last 10 days, so, of course we can expect some corrections, along the way.. So, we have to stay calm..