Consolidation leads to expansion.
I can show you thousands of examples of this. It’s a rare setup that doesn't come around every year, making it the easiest trade you can catch, just buy and hold.
ethereum:native will outperform any asset on earth in the next 3 years.
Michael Saylor, the founder of the largest BTC treasury company in the world, worth over $46 billion, has engineered a perpetual and infinite bid for Bitcoin through a speculative attack on the fiat monetary system.
Let me explain this to you simply in a way that will change how you view money and investing.
Bitcoin is absolutely scarce. There will only ever be 21,000,000 of them. It is digital money and because the supply is limited, unlike the U.S. dollar which is infinite, it acts as a store of value, similar to gold.
The only difference is that the amount of new gold available increases as the price goes up over time — more people mine it to sell because the price is higher. They develop proprietary ways to accumulate it and find it in the ground, ocean, etc. This means that gold’s supply is always increasing and it will continue to increase forever.
Gold has served as a very formidable store of value over the last 5,000 years but let me explain why Bitcoin is different.
Bitcoin is absolutely scarce. That means that no matter what anyone, anywhere in the world does, the supply will not change — it is calculated fact and built into the code. It’s built on supply dynamics. If demand goes up, price goes up and if demand goes down, price goes down.
Michael Saylor is accumulating Bitcoin because it is the gold of the 21st century. It’s a 17 year old asset that is going through price discovery — that means that price has not penetrated into every available market yet like gold has over the last 5,000 years.
So what exactly is Michael Saylor doing to buy more Bitcoin?
He’s selling his company’s stock $MSTR to hungry institutional investors who want exposure to one of the fastest growing assets in the world with a lot of volatility — more risk but potentially better returns. He can print as much stock as he wants, as long as investors demand it.
When the price of Bitcoin goes up and the demand for his stock increases he can use the proceeds to buy Bitcoin.
He is also offering a “bank account” product to his shareholders via $STRC. This allows him to buy Bitcoin when the price goes down and people are scared and frightened of the future due to global uncertainty — like the War in Iran. Investors buy STRC to get a ‘guaranteed’ return of 11.5% — more than 3x a typical money market account.
When the price of Bitcoin goes down the demand for his dividend product goes up because people want ‘guaranteed’ yield on their money and he can use the proceeds to buy Bitcoin.
Ultimately Saylor and the team at Strategy have engineered a financially innovative way to buy Bitcoin regardless of the direction of the price and bid the asset up almost infinitely.
So what’s the catch? The catch is most people haven’t caught on yet.
Strategy currently has 720,737 Bitcoin. Which is nearly 3.5% of all the Bitcoin that will ever exist and they’ve accumulated the majority of this in the last 3 years — and because Bitcoin is a natively digital currency it is being adopted at a rate faster than the speed of the internet. Strategy is accelerating with their adoption of Bitcoin.
So why isn’t price higher if Strategy is buying so much Bitcoin? Because in the short term, Bitcoin can be manipulated just like any other financial asset — large financial institutions can buy it up, sell it aggressively, short the stock, suppress the short term returns and prolong a drawdown during a war or a financial bear market.
However, in the long term, Bitcoin is infinitely scarce and operates outside of the traditional financial system. When the price moves it does so in a violent and aggressive manner leaving many left in the dust, penniless and liquidated.
Michael Saylor has cornered the Bitcoin market and is building himself monster company, Strategy.
I hope this helps someone understand this company and Bitcoin a little bit better in a simple, basic way.
This is not financial advice.
All consolidations are bullish in an uptrend.
Many are calling for macro tops while the price has been consolidating within a range for three months. However, from a technical perspective, calling macro tops in this range is irrational. $GOLD has just broken out of its range, and there is a high probability that $BTC will follow, as it usually does. As long as the uptrend continues, consolidations tend to break to the upside.
Let's analyze the $BTC and $GOLD charts to understand why the current consolidation is bullish.
$BTC
- Since the bottom, we have had two significant consolidation ranges, both of which ended with an upside breakout. In an uptrend, all consolidations have a high probability of breaking to the upside to sustain the trend. That’s why it’s called an uptrend—if the price loses market structure and breaks below the range, it’s no longer an uptrend. In such conditions, you should be a buyer at range lows.
- In an uptrend, there are two opportunities to join the trend: either buying the dips toward the moving averages or buying consolidation dips with an invalidation below the range.
- Currently, the third consolidation is in play, and it will likely break out to the upside because we are still in an uptrend. As long as the trend remains intact, consolidations should be expected to break upward—until proven otherwise. Brief pullbacks below the range low are acceptable, as long as the price doesn’t stay below for too long.
- When consolidations start to break down, it signals the end of the uptrend and the beginning of a new trend, called a downtrend. In a downtrend, the same principle applies: all consolidations have a high probability of breaking to the downside, so you should be a seller at range highs.
Example for a downtrend:
$GOLD
- $BTC is correlated with $GOLD, the S&P 500, and other risk assets. It is no longer just a "crypto asset." As seen, altcoins have dropped 70% while $BTC has remained within its range. Most altcoins have either topped or made new lows, there is no longer an altseason like in 2017 or 2021. Only selective altcoins will follow $BTC.
- $GOLD is in an uptrend, having formed three consolidation ranges, all of which broke to the upside. As mentioned before, consolidations in an uptrend are bullish as long as they don’t break down.
- $GOLD has broken out of its last range and is making new highs daily. Soon, $BTC is likely to follow.
$GOLD vs $BTC
You don’t need to be smart to see this: As long as $GOLD stays in an uptrend and breaks out of all consolidation ranges to the upside, $BTC will eventually follow—maybe late, but soon. Stay bullish, buy the utility coin dips, and hold.
As long as BTC doesn’t break down from its current range, calling macro tops is irrational.
I am afraid that today real total liquidation is a lot more than $2B, by my estimation it should be at least around $8-10b. FYI, Bybit 24hr liquidation alone was $2.1B, As you can see in below screenshot, Bybit 24hr liquidations recorded on Coinglass was around $333m, however, this is not all of the liquidations. We have api limitation on how much feeds are pushed out per second. From my observation, other exchanges also practice the same to limit liquidation data. Moving forward, Bybit will start to PUSH all liquidation data. We believe in transparency.
russians killed 7 people in Lviv. Three of them are children.
Missiles with American chips kill Ukrainian children, while Ukraine is forbidden to respond with American missiles.
#Bitcoin is currently the 9th biggest asset by market cap in the world.
It only needs a 158% increase to become the 2nd biggest in the world.
158% increase will put the price of 1 Bitcoin at $170K
For BTC, it's not a difficult task