It’s been almost a solid six days since we saw massive moveings in the price of BTC, down more than 40% in one day the price dropped below the $30,000 for the very first time with some $6 billion worth being lost in just a 2-hour period (or in other words, very rapidly in the short term). The move of Bitcoin from over $600 to $300 is huge, not only in Bitcoin, but in money.
With recent price actions, it looks like some may have missed the big move of $300 in Bitcoin. It’s not just the $300 move there is now a move of $300 above (i.e. more than) the average price that Bitcoin traded below $350 for five days. It seems that the new $300 figure has been made up of a lot more than the $300. In other words: more that BTC has been trading below the average price for five days in a row… and there could still be more moves up to another $300.
We know the $300 figure is fake!
It is clear from an analysis of the prices that the price action looks nothing like what we’ve seen recently. But we are quite sure that that the $300 level does exist somewhere. So it was interesting when we did some research to find out what’s really going on. We are convinced that we are seeing the biggest rally in Bitcoin price that we’ve seen in years and we’ve never seen so many rallies before.
And the rest of this blog post has no particular interest for Bitcoin itself. Just Bitcoin rally is a new feature in the news, and it’s interesting for sure. A lot of people were surprised to see Bitcoin soaring past the $3,000 mark. But at least it was not a $10,000 move as was so commonly seen earlier this month. Still, most traders were shocked at the sudden and massive move of $3,000 in BTC. The fact that a group of traders or an individual investor would actually take such an extreme risk that they would sell their Bitcoin for more than 10% of its value to buy Bitcoins at $3,000/BTC really makes Bitcoin a rare-and-prized commodity. It’s especially interesting how the first rally was not even from the $1 to $2 levels but rather the $3 to $3,000. It appears that the rally was initiated by the long-held long-range traders who believed that a massive rally was brewing. It’s also interesting that the price moves within a very tight band can always be the result of major moves in the Bitcoin price and yet there is a single sudden spike. Is this one thing; or all?
At the time, a lot of people were speculating that one or more major players were planning a large crash. This was because there was no way that any currency could possibly be worth $3,000 if there wasn’t some major correction occurring within the future price action that would send Bitcoin from its current price and into the $1,000 range.
There was very little discussion in Bitcoin circles about what was really going on, even before the latest rally. What we did see in the news and in the mainstream media was a bunch of people saying “hey, hey, this just broke the previous price, and there’s nothing you can do about it.” It’s not true: there is something you can do. It’s time for you to start to learn to read the big picture of Bitcoin’s true trajectory. To be clear, there was always a massive rally in the summer, and it can be seen how this $300 price would keep moving up and up without ever reaching the $3,000 mark. Then it moved to $1,000 and then to $2,000, and finally to $4,000 and below. Yet if Bitcoin has risen for more than $1,000, we have had a rally that has been at least $1,000 and maybe more.