Bitcoin Analysis
BTC Analysis December 2020
Token Analyst: Cryptophil
Analysis Summary
👍 Bullish
It is my pleasure to make the very first Swissborg Token Squad token analysis about Bitcoin. An analysis not only eagerly expected, but also a very first for the SB Token Squad.
What a year for Bitcoin and cryptocurrencies as a whole. New ATH for both BTC and CHSB, the Swissborg’s token, increased sharply just before Christmas, DeFi exploded over the summer, new projects are in shambles and institutional adoption is beginning.
While the year was marked by a major health and economic crisis, the cryptocurrencies have been able to draw their pins from the game.
The year 2021 is shaping up to be a blossoming year with the boss, Bitcoin, who will take us to new heights.
There are numerous analyses of Bitcoin, here I offer you my vision, what I find relevant and my thoughts.
Fundamental Analysis
👍 Bullish
Bitcoin is beginning (at last) to be considered as a store of value, similar as gold. The devaluation of fiat currencies and inflation reinforces Bitcon’s position as a means of diversification in one’s portfolio and financial assets.
We are at the dawn of a financial revolution, like the Internet or television were before. Finance and the banking system are still the only foundations that have not undergone any major changes, and this is now underway.
The new record price of Bitcoin strengthens the awareness that money and finance must undergoing great change to create a fairer world, led by the millennials that are becoming tomorrow’s generation of leaders.
This year there was a massive influx of institutional investors such as Microstrategy, Square, Grayscale, … which have significantly increased the crypto marketcap from $186B at the beginning of 2020 to more than $600B today.
Below is a list with the declared assets of the largest cryptocurrencies portfolios in the world and this list has grown considerably over the last 3 months. This proves that big companies are starting to consider Bitcoin as an investment asset and not as a purely speculative asset :
Technical Analysis
👍 BULLISH — Long term
For the long term, I would like to show you this well known graph, which is the Stock to Flow Graph from PlanB .
This graph shows us the obvious correlation between the progression of the Bitcoin price and the Halving (dividing the reward by 2). We had a halving this year and the next one is scheduled for April 2024. Each time, a few months after a halving, the price of Bitcoin has reached a new historical high. No one can say for sure, but if this graph is any indication, then Bitcoin should reach over $100,000 by the end of next year.
Another graph that I found interesting, for a long-term analysis, is one I saw in a recent video from Slashcoin.
He proposed the graph below, Bitcoin 14D with RSI, and noted that when the RSI hit level 34, this marked the start of the last 2 bull runs before reaching in both cases a new ATH.
As it can be seen, RSI of 34 was reached at the end of 2018 and the price of Bitcoin still followed the bottom of the bullish channel. This, of course, bodes well for the future if Bitcoin continues in the same direction.
The Future is bright with Swissborg but with Bitcoin too!! 😎
👎Bearish — Short term
For the short term, I’m rather bearish, due to a lot of negative signs.
In 4H, the graph draws an “M” which is the same pattern we had in late August/early September when Bitcoin went from $12k to $10k. And we also have a rising wedge pattern which is rather bearish.
But we know that BTC never does what most people think it will do, so we have to be careful especially since we also have a nice hidden bullish divergence. That means the price is making higher and higher lows and the RSI is making lower and lower lows.
Until next month
I think there is no right or wrong time to invest in Bitcoin. You either believe in it or not. Preparing for the future also means taking risks, discovering new things, investing, building and learning. The only thing I can ask is: “When are you going to start accumulating Bitcoin? When ït reaches $100k? Maybe one day when Bitcoin goes to $4K?”.
The potential that cryptocurrencies represent, leads me to the thought that it would be nice to put a bit of Bitcoin aside and I’ve already started . Have you?
See you soon for a new analysis! #WeAreSwissborg — The Future is Bright! — CryptoPhil
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About the author
My name is Philippe aka Cryptophil, passionate about cryptocurrencies, poker, cooking, motorcycling and apprentice investor. I love to share my passions and actively participate in projects. Members of a service club.
The Wealth App offers one of the best experiences for buying crypto signing-up offers you a chance to win up to $100 in Bitcoin with my link https://join.swissborg.com/r/philipNTYT
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Disclaimer
The information provided in this document is produced by passionate and active contributors from the SwissBorg DAO. This Content is for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial, or other advice. Please consult with an accredited financial advisor before making any investment decisions and ensure that you conduct your own research.
