We are just in Q1 of 2020 but I believe all of us can’t wait for this year to be over.
S&P, Dow Jones, just erase all its gains from their 2019 performance and look to a further correction. Oil drops to its 18 years low and prepares to give a margin call to those future traders who enter above 30 USD. Most commodities erase all their gains and traders are looking for inflation metrics to set up their entry and trades. US treasuries drop close to Zero. The whole market is in a panic.
Bitcoin and cryptos also cannot escape from this financial wreck, after testing 10,500 USD key resistance, the price starts to surrender its gain and when oil crashing to 26 USD, bitcoin price starts to fall rapidly and touch 3800 USD in 48 hours time on selling pressure.
The Cefi/Defi market face their first stress test since the rollout and things are ugly. The institution is panicking, a lot of high-performance traders and fund players that I know are facing Thanos moment where their asset come into “halving” after the finger snaps. If you think the fallen year of Bitcoin in 2018 is worst. Last week is worse than that.
However, having all this being said, this is not unpredictable as I have already shared 3 months ago on bitcoin price action outlook, The price action just continue on its track, the exception, just with a lot of unexpected price’s twist and bullish psychology by most of the market players due to bitcoin halving event ahead.
However, the whole landscape never said that the price won‘t retest its strongest support before heading to 20,000 USD? It is the media and peers that led your mind to play tricks on you into such bullish psychology and it is being exploited by some crypto cartels out there.
So you may say… that’s too much. It is hard to swallow. You can’t take this anymore. I want to stop reading this. Then, I request you to take a moment to breathe and continue to read what I am going to say next.
It is time to take a moment to revisit the intention of Bitcoin inception since 2008 due to the mortgage financial crisis. This is the moment when and where we can feel why Satoshi trying so hard to create a new financial system for you and me who are so helpless when the further event unfolds where those elites and leaders are trying to “patch” existing financial system.
The existing financial system has broken. I am sad to say. “Patching” is just to slow its dead but never ever a solution to the problem.
For the past week, our exchange saw a new record volume and new bitcoin holders which enter this new ecosystem. It is really an emotional moment for me. When the institution is panic selling and rushing for an exit, for once I thought the retail has given up this market, they take a contrarian position. It is like a big slap to some of the market participants where we always take this as our religion, belief and so-called asset. How we react when the existing financial system under correction. We let panic swallow us and forget why we started in the first place.
Now back to bitcoin HODL (Hold On Dear Life) and new bitcoin investors. I would like to welcome you all to the ecosystem. The road ahead won’t be a smooth sailing journey but it will be definitely fruitful, mind my words. There are still multiple macroeconomic outlooks and financial events to be unfolded and the journey ahead is going to be rocky.
Do size your investment on cryptocurrency conservative, trade with care with confidence.
Here is the old chart for us to take a moment to revisit,
Here is the new one,
I will see you at the top.