Can we see Bitcoin at over $50,000 by the end of February? A 44%+ move in a single month is pretty big ask but Nicholas Merten has spent some time to talk about why he flipped from a bearish conservative to an optimistic turn of the market as we have started to see the market dynamics shaping up for more excessive risk taking and price appreciation.
“Taking a look here at the broad of the market over the last seven days has been overwhelmingly positive, we have got all the signs for optimism for the broad of Crypto space. Dogecoin up 335% XRP up 131% there is alot clear signs here[market], alot of green moves that are signalling a sense of confidence.”
“Bitcoin itself which we are going to be focusing on today is holding out quite well for how well it performed in January, December and also the broad trend here[October-November] after its strong recovery from a brutal sell off in March going into the early fall.”
“The question here is whether or not Bitcoin can keep up that optimism. A couple of weeks ago I was a bit concerned about Bitcoin price when we started to have almost a compound in sell offs where the sell off pressure was getting much and much stronger compared to the buy side.”
“All we need to see here[chart] is that Bitcoin made support on previous resistance[daily chart], we see a good buy signal like we saw on the 29th of January and now its about getting above this resistance point at around a little below $35,000. If we get that and continue setting higher lows and higher highs, 27 candle days here[chart] making a 42% move.”
“We have seen this before, it’s exactly what we saw between the latter part of December going into the early portion of January. It might go into early March and it could be earlier than this[27 days]. Bitcoin might be absolutely astronomically vertical, who knows? Things could change in a moment of notice and this boast week has been a proving factor of that.”
Nicholas Merten explains this is reasonable because “first of here[Crypto Market Cap chart] broad of Crypto market here has been optimistic[uptrend] but we had some dynamics that changed this week for all market across the board and that was the story around the GameStop stock($GME).
The crowd at Wall Street Bets going from a community that was already growing at an astronomical level, going from under 1.1 million all the way up to nearly 5 million people. More than double growth, one of the largest sub Reddit in a matter of a week bringing in a whole new influx of investor capital into the equity and Crypto market getting interested in investing. This community has now started to play a massive role in the direction of the market and that’s a very substantial thing to keep in mind, this is not going away guys.”
“Second is Bitcoin Reddit subscribers having a majorly pair offer the last week as well already continuing what we see as parabolic exponential growth here[chart] and now we have had some familiar faces, one of the public figures starting to eye Cryptocurrencies and Bitcoin.”
Bitcoin is on the verge of seeing broader acceptance, Elon Musk, the CEO of Tesla said in a Clubhouse conversion on February 1 with Adressen Horowitz and other prominent investors.
Elon Musk, currently the world ‘s richest man put the word “Bitcoin” in his Twitter bio on Jan. 29th, causing the price of BTC to rally by more than 14% in 30 minutes.
“It’s realistic to eventually see someone like Elon who was one of the co-founders of PayPal will understand the benefit of electronic payment network that can have access to store value, that can edge against the appreciation of currencies.”
Bitcoin may look especially attractive to some investors now for the same reasons that gold has been supported in the last few years. Neither gold nor Bitcoin pay a yield on an outright basis, but this matters little when yields on other assets have collapsed. And gold is one of the few assets that can do well in stagflation, an outcome likely enough that it should be considered and planned for.
Moreover, in the context of high and potentially rising levels of external and internal conflict, gold has the added benefit of not being tied to the outcomes of any one country. If one were to truly accept the idea of Bitcoin as “digital gold” you could imagine a conceptually similar case being made for Bitcoin too.