Where Bitcoin Goes, The Whole Market Goes

Cryptocurrency market analysis June-July 2019

Manu Rastogi (a.k.a. Bit Devta)

Published in

The Dark Side

4 min readJul 4, 2019

There’s one thing I’ve been getting non-stop questions about: Bitcoin.

But if you’ve been following me, you shouldn’t be surprised by its surge over just the past week.

In this article, I’ll tell you where it’s headed from here and what it means for the whole market.

Bitcoin Price Action

The thing that I really want to talk about today is what’s going on with bitcoin… We almost reached $13,000 on bitcoin, I see it heading towards $15,000 after a minor pullback (strong resistance at $9,500). And I’ve been getting a lot of mail from people wondering, “When is it going to pull back(a major one)?” or “When is it going to crash?”

I’ve been saying since April that the bear market is over. Institutions are coming into bitcoin. The demand for bitcoin is skyrocketing and will continue to skyrocket.

So I don’t see bitcoin flopping over and falling apart. In fact, I see it going from strength… to strength. Remember: We have huge institutional players that are getting ready to come into this market and to open this market to institutional money.

This move that we’re seeing in bitcoin shouldn’t be a surprise. Everything that we’ve talked about is starting to fall into place. Very soon, you will have brokerage firms this year allowing people to go in and buy bitcoin with a click of the mouse.

What we’re seeing is really just the beginning. If you look at the charts and how bitcoin has broken out, it suggests that bitcoin is going to go significantly higher.

Predicting The Next Pullback

Now, I’ll tell you, obviously bitcoin does not go up in a straight line. It is always volatile. But I think trying to predict when that next pullback will be after an 18-month bear market, is a dangerous, dangerous game. A lot of the people that wanted to sell their bitcoin have sold their bitcoin.

Maybe there’ll be some holdouts around $19–20k, where people will say, “Well, I bought some at $19k, I bought some at $20k, and I’m going to wait to sell it until it gets there.” I could see bitcoin taking a pause there. But once it clears that area, there’s no overhead resistance. You know how bitcoin moves. Once it decides to run, it runs. So I would say, if you’ve under-allocated, based upon your own personal allocation rules, you need to allocate appropriately.

Altcoins Will Catch Up

Again, our take here if you want to own a broad portfolio of coins and you want to have rational position sizes because where bitcoin goes, the whole market goes.

Typically, it’s a six-month time lag, and this is something I addressed a couple of months ago. Bitcoin will always move first, and it will always move faster than the rest of the market. We went back and looked at all the moves. And generally speaking, within six months of bitcoin breaking its downtrend line, you see the rest of the altcoin market begin to catch up, and then ultimately outperform.

So that opportunity is still there. If there are altcoins in the portfolio that you don’t own yet, and it works with your risk parameters, then take advantage of this opportunity because we are just beginning to see this life come back into the market.

Also, You don’t trim up the portfolio at the beginning of a bull market after an 18-month bear market. It just doesn’t make sense. What you want to do is wait for the market to continue to develop.

Again, I want to stress to you that this is still very, very early days. Bitcoin just broke its downtrend line in April, and we’re just here in early July, so it’s only two months.

So, HODL tight and Happy Trading!

Thanks for reading! Feel free to check out some of my similar Cryptocurrency related post below.

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