Bitcoin Hyped to the moon
The crypto-world is getting hyped off its face as Bitcoin breaks three year downtrend and there are a number of major coin developments. See graph below to see how the ‘green’ has jumped about that top line.
The problem is that rumour and bullshit is flying everywhere as the ‘commentators’ who are all ‘long’ Bitcoin are whipping up the market praying for the major hyperbolic move we have all talked about for years. Its $100,000 a coin baby!!
A classic example I love is the graph below which was recently ‘attributed to links with global banking giant Citibank’. Wow! … Stop the presses everyone… do this mean that Citibank believes Bitcoin is going to $120,000?!!! I think it could! Kapow! Bazinga!
What a total load of tripe. This is pure undocumented speculation. It’s like the National Enquirer of Crypto is on overdrive. ‘Aliens Buy Bitcoin’ is next headline.
So what’s reality?
1. Big News. A three year downtrend has been breached. Its big news. Yet… the fact that the top levels were ridiculous speculative BS means you have to take all this sceptically.
2. Great fundamentals. Most importantly, there is a growing stream positive news of organisations like Paypal, Visa, etc talking their new crypto involvement. This means the big buying demand is coming. Problem is that its due in 2021, not today.
3. Big guys are buying. The institutions are buying lots of crypto now. Yet its not overwhelming amount to drive up prices.
4. Sell alt coins. There are ‘Blue Chips and ‘Alt coins’. ‘Blue Chips ‘ are to few top coins that are 90% of the value. Bitcoin, Ethereum, Litecoin, etc. Alt Coins are the rest. The Blue Chips are leading the pack and the assumption is that the Alt Coins will then all boom yet with bigger growth percentages; so if Blue Chips go up 50%, Alts will go up 100%. The drivers of growth are focused on the Blue Chips. It’s called ‘flight to quality’. Be very wary of this ‘Alts will follow’. It doesn’t seem logical this time. I would sell them now.
Summary. Be wary of buying into all the hype designed to drive market volatility from these people trying to build their following on YouTube Tradingview, etc. These people have terrible prediction records!
The smart strategy is to look at fundamentals, realise they are fantastic so buy big now and hold on for the big market move.