2021.04 - Inevitable
The Stance
My personal opinion on where the ball might be headed.
TLDR: "In retrospect, it was inevitable". Elon Musk's tweet —now preserved for the ages in the Bitcoin blockchain— will only grow in relevance.
Last week was insane. Unless you were living in Mars you probably heard a lot about the GameStop / Robinhood saga I'll discuss it more at lenght in the Short Fiat section, but I just want to point out that while this may not be obvious on the surface, Bitcoin and the GameStop situation absolutely are connected:
“As advocates for retail investors rail against the current structure and practices of financial markets, it is important to note that much of the work being done in the blockchain space has been inspired by these barriers.”
—Paolo Ardoino, CTO Bitfinex
Speaking of Mars, this also happened:
The bio change that launched 1,000 tweets…
(now removed)
With a tweet and a change to his bio, Elon Musk —one of the richest men in the world— publicly signaled support for Bitcoin. The effect was swift:
Price rose more than $5,000 before settling back down amid heavy trading volume. It's no secret that big firms have been accumulating and will likely continue to do so. Big players coming into the space makes for this an exciting and frightening moment.
Let's be cristal clear, these are not "the good guys". The biggest sharks in the ocean are about to dive into our pool. There will be blood, make sure it's not yours.
These guys will do everything they can —and they have ample means to make shit happen— to accumulate heavily before the next big move up. Don't be surprised if we see a strong price drop and the FUD to go with it.
If your hands don't feel super-strong —or you don't know what the hell what "strong hands" are— schedule a free call with me ASAP.
The big sharks will try to manipulate you into selling, don't let them. If last week showed us anything it's that the collective power of small players with determination should not be underestimated.
The whole Gamestop saga has made plain what Bitcoiners have been saying all this time —the legacy system is rigged in favor of the most powerful. And while big traders, exchanges and whales can and will use every trick in the book to play with the price, they can't change the rules.
Each Candle in the chart represents 1 week. For a fuller explanation of how to interpret this chart see below:
Interpreting the Bitcoin Surfing Chart:
Think of Bitcoin's price-action as a kite-surfer:
Bitcoin uses its board to stay above water and wants to catch some air.
When it catches air, it tends to keep rising but if it rises too fast (it's feet no longer touch the board) it can stumble.
If it falls off the board, it tends to keep falling until it regains its footing (may need to touch water or sand for that).
Water and sand arrest the fall and help it push itself back up.
If it goes up so much that it gets close to (or into) the Stratosphere, it will probably crash down all the way into the sand and may need to tap the bedrock level before pushing up again.
