Bitcoin has now moved well past any potential 4th wave rally in Minute degree, which means we have to start another wave count but from a different peak. Could this present rally turn into the next bullish phase up? It could, but if that’s the case, then we have a long way to go with Bitcoin staying within the two trend lines.
It’s pretty hard to keep bulls caged up just by drawing pretty trend lines, but for any bearish move to continue, the bottom trend line must get sliced. Also, any $11,500 price level will never hold, as bearish moves always need lower lows, to keep the Bitcoin bears happy. Even now, Bitcoin can produce another major double top, just to make it more miserable to count waves. Volumes are not really exploding, so interest in Bitcoin futures is not exactly the greatest thing to get all excited about.
From my perspective, Bitcoin and all other Cryptos are just speculative asset classes, that many are calling Bitcoin an “investment”. Any currency is just a medium of exchange to measure and compare, like any desktop ruler or measuring tape. Buying or owning a bunch of “rulers” has no intrinsic value. Sure, we can have numbers on these currencies, but in reality currencies are constantly shifting in value, but the numbers on the bills never change.
When currencies implode, they just print something with an extra zero in front of the decimal point, and the semi full of cash can now fit into your basic wheelbarrow. The longer Bitcoin takes in developing a new direction, the more impatient Bitcoin traders will get.
As of this morning there are now 1384 Cryptos on the list, and when new Crypto issues start to slow down, then this list should stop growing as well. The worst case scenario would be that the Crypto list starts to shrink or stagnate. This week I noticed the first possible sign of stagnation, but that could be just due to the holiday season or even a misprint. I would like to have more evidence of this potential stagnation, which still could take weeks to clear up.
It now takes 12.26 gold ounces to buy one Bitcoin, which compressed a bit, from the 15.9:1 ratio I once calculated.