I’ve been writing and saying it for a long time: In 2017 we had a bitcoin or ultimately even a crypto hype, in the course of which the “mother of all cryptocurrencies” – Bitcoin (BTC) – hit an all-time high of around 20,000 US dollars rose. This was a hype, so that courses like this – born out of euphoria – were too much of a good thing at the time. So even I would not have bought Bitcoin (BTC) at exchange rates of around 20,000 US dollars.
Then came what had to come, namely a massive correction. This led Bitcoin (BTC) back towards the $ 3,000 mark, which meant a loss of almost -85% compared to the highs at the time. In just a year or so, mind you. So it’s no wonder that at the end of 2018, many were already (desperate) about Bitcoin (BTC).
But I said and always wrote that the long-term upward trend in Bitcoin (BTC) – despite both the hype and the correction – is absolutely intact. Therefore, I never had any doubt that the “mother of all cryptocurrencies” will rise again sooner or later and also regain or even surpass its old all-time high. If you don’t believe that, just read my old newsletters in the archive.
Should Investors Sell Right Now? Or is it worth getting started with Bitcoin?
Tohuwabohu over the US presidential election helps
Now it could be ready soon, even if I don’t really expect it yet. But from a technical chart point of view, Bitcoin (BTC) has recently broken up not only in the short term, but also in the longer term (“big picture”). From a purely chart-technical point of view, it has ended both its short-term and the long-term correction that has been ongoing since the hype in 2017.
From a short-term perspective, i.e. in terms of trading, it generated a chart-based buy signal with a price target of 14,800 US dollars and later up to 18,000 US dollars. From the perspective of a medium- to long-term investor, however, it looks much better. From this point of view, price targets of 14,800 and 18,000 US dollars are nothing more than transit stations – on the way towards the old all-time high of 20,000 US dollars and later.
There is enough support for Bitcoin (BTC). The Covid-19 pandemic has recently intensified again, which is why we have received a second lockdown here in Germany – but also in numerous other European countries. In addition, the still unclear US election result is fueling new uncertainty. In this environment, the central banks are unlikely to reduce their monetary policy support for the economy, so massive amounts of money will continue to be printed.
If so, then inflation is only a matter of time. Yes I know! The great hyperinflation including a total crash of the stock market and economy has been propagated by many for years. On the other hand, I’m not that negative. But the steady increase in the money supply ultimately leads to inflation. Not necessarily with the prices of goods (of daily necessities), as we have been able to observe for many years. But with hard assets (asset inflation!) It does.
Consistently use every price weakness to (re) buy!
Therefore, I would consistently use any price weakness to (re) buy hard assets such as stocks, Bitcoin (BTC) and other crypto currencies, gold but also fine wines, works of art, rare whiskeys etc. I consciously write Bitcoin (BTC) and other crypto currencies because we have recently been able to observe a “phenomenon” on the crypto currency markets several times.
So recently the altcoins, led by Ether (eum) (ETH), rose strongly and made the Bitcoin (BTC) look weak for a short time. Then the little Altcoin speculative bubble burst and the money flowed into Bitcoin (BTC) so that it could catch up and (more than) offset its previous underperformance. Most recently, for example, the Altcoins rose into July due to the DeFi boom, which is also discussed the newsletter.
The DeFi boom has currently subsided a bit, but in my opinion this is just the calm before the storm. Because in general I have a great future for the area of “Decentralized Finance”, although here too – as was the case with all the ICOs in 2017 – there may be a lot of smut. But there are also some very good projects that will create a lot of value in the long term.
Therefore, in the long term, Bitcoin (BTC) is still a good investment from my point of view and the new all-time highs (keyword: #ToDaMoon) is only a matter of time. But I will stick to the fact that Ether (eum) (ETH) has what it takes to overtake or even overtake Bitcoin (BTC) over a period of three to five years. Ins