Bitcoin markets rallied slightly during Wednesday’s session as we continue to view the $ 18,000 level as an important support area. As long as we manage to break out of the $ 18,000 level, there is a chance that we will move sideways and may waste more time. Keep in mind that Bitcoin is very extreme on the risk spectrum, so you will need to see a significant shift in risk appetite for Bitcoin to rise. I don’t expect to see this anytime soon, especially as the Fed will significantly raise interest rates and, perhaps more importantly, try to get more aggressive later on.
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In this environment, there is no real opportunity for Bitcoin and I think we will collapse dramatically. If we do that, then I would expect Bitcoin to finally break through the crucial $ 18,000 level, and then perhaps fall back to the $ 15,000 level pretty quickly. The $ 15,000 level is a large, comprehensive, and psychologically significant number that many people will focus on. Clearly, this deserves attention. After that, I expect the market to return to the $ 12,000 level, which is an area that has been important in the past, as we started our latest uptrend from there. Obviously, this level should be considered an important minimum potential in the market, but that doesn’t necessarily mean it needs to be accurate. I think with enough time, this market will eventually find some sort of bottom to bounce off of, but we still don’t know if it’s really at the $ 12,000 level or less.
My long-term plan is to be able to accumulate bitcoin near the $ 12,000 level and build a fairly large position over the course of several months, if not years. After all, we are in the midst of a “cryptocurrency winter” and central banks around the world are doing everything they can to destroy inflation. Ironically, cryptocurrencies are in a situation where they need the world’s central banks for stability. I can assure you that the Fed doesn’t care if Bitcoin is ever stable. Although I think so, but it could be a good opportunity in the future, I also think you have the ability to get bitcoin at a much cheaper rate.
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