Lets take a look.
Since I first got into bitcoin it is clear that bitcoin is gaining more and more mainstream acceptance. My own stance has evolved since the time I first got interested. Back then I was convinced about how bitcoin would decentralise money and bring power to the people and dethrone the banks. Now I see it more as a game changing technology which has huge profit potential. And might still work out to be resistant to central control, or might end up centrally controlled too. I guess its up to us, the community to stay vigilant and keep it on the right track.
As of now Bitcoin is still holding onto its title of the king of crypto! The big daddy, although not quite as tightly as it used to with its percentage market cap in decline. (Posted image in comments)
Since bitcoins lows after the 2011 bubble I’ve charted the price rise on a log scale using a Andrews Pitchfork to mark the channel. I’ve been using data from the Bitstamp exchange. (Lately there is a lot of divergence on different exchanges due to problems with banks. Bitfinex in particular looks in trouble and if it fails could impact bitcoin negatively)
The chart looks like this.
Its been the most boring technical analysis ever as far as my chart goes. Nothing really changed in months. So far bitcoin has stayed in the region of this channel extremely well. Even the big spikes and crashes along the way have mostly stayed exactly on track. I hope some of you managed to get bitcoin when it languished at those lower levels. I’ve mostly hodled this whole time.
At the moment what can I say? bitcoin has put scaling problems to the side for now and decided to roar on to new highs despite that. I think this is fueled by mainstream interest in the whole cryptosphere growing. Coupled with bitcoin being genuinely useful for people living in countries enduring devaluing bank/govt money and capital controls. Power to crypto.
But I am still slightly cautious about bitcoin at this exact moment though. Because there has been quite a prominent bearish divergence between the RSI and the price (although maybe that is breaking up), and because bitcion is near the top of that channel that I already spoke about. And RSI looks overbought. Maybe bitcoin will test near the bottom of that channel again?
If you have been on the sidelines waiting to buy bitcoin for the first time I can understand the FOMO but logically its probably profitable to wait and buy the dip. Having said that when bitcoin really goes on a huge spike it sometimes doesn’t stop for breath leaving many on the sidelines wishing they had bought before. I honestly don’t know what I’d do in the postion of wanting to buy for the first time, I’d maybe buy a little just in case. Its not investment advice. Personally I’ve taken some profits but left most my core stack of bitcoin intact.
To finish heres another view of bitcoin on log scale zoomed out further with 1 week candles.