What concerns to Bitcoin, this week’s stellar event was the reluctant breakout of the $ 12K resistance. Of course it came to nothing. It was a forceless breakout that formed extremely weak support. That became apparent from the start. In other words, it had no breakout.
We need more proof. The ideal is to break with a rally of at least 10%. That is, break and go to $ 13K. Then stay there for several days. Upon exceeding the maximum of 2019, we can already start thinking about exceeding the historical maximum. And, when we exceed our historical maximum, things change there. Our destiny would be to double. In other words, the race for the $ 40K. In a matter of months or a couple of years. I do not know.
Would we be under $ 10K again this year? I really doubt it. Still possible, but highly unlikely. With Wall Street at the top of the mountain and with a new stimulus package just around the corner, the balance is in our favor. How long will the consolidation last? Nor do I know, but time favors us because our floor is hardening.
Now, let’s talk about the most read crypto news of the week.
I had heard far-fetched arguments. But something like this is already too much. What is basically happening here is that they want to put an elephant in a matchbox. I mean, Bitcoin has to be like oro at all costs. It’s like the boy who wanted a horse for Christmas, but got a dog as a gift. So, he dresses as a horseman and walks through the fields riding his “horse.” The Lone Ranger is believed, but in reality everything is a great ridiculousness. This whole business of forcing a (forced) marriage between Bitcoin and gold is already reaching absurd levels.
Max Keizer is like that cousin we love and admire, but every time we see him we don’t stop fighting with him, because we can’t stand the nonsense he always says. That is exactly what happens to me with him. A few months ago he called an “idiot” Warren Buffett for not investing in Bitcoin and is now saying that it will be the main responsible for its rise to $ 50k. But everything will be in the style of the butterfly effect. I mean, the butterfly flaps a bit around here and on the other side of the world we have a hurricane.
According to cousin Max, gold will go up because Warren Buffett bought a Canadian mining company. And the rise of gold will drive the rise of Bitcoin by 4X. Not even Cantinflas could have articulated such a mess. I don’t know how many principles of logic Max broke here with so many fallacies, but if they gave me a dollar for each one, surely I could buy all the gold in the world. So, If one fine day Warren Buffett decides to buy a bicycle instead of a Cadillac, this means that SpaceX Elon Musk it will go up in price like never before. Only in the world of Max.
Of course we are in a bubble. Almost everything is overrated. The euphoria is being fueled by greed and not by fundamentals. The market has been overvalued for years. That is not new. For years, we have had deficit generated growth. Before the coronavirus, the numbers were fine on paper. But the signs of exhaustion were clear. The economy has been kept alive by the monetary devices of the Papa State. The coronavirus crisis was a low tide and revealed to us that we were actually naked. The solution? Rain of bills.
In the midst of a terrible crisis, financial markets have already recovered from the March crash and completely erased losses. I mean, nothing has happened here. The bills are up to our necks, but deep down we all know the stark truth. We are still naked. They follow the artifices and they follow the magic of our fairy godmother, the Federal Reserve.
Now, no one knows for sure when exactly the bubble will burst, but we can bet that the stimulus won’t stop before the November presidential election. Of course, this does not (necessarily) imply that the stimulus will stop after the elections. In any mandate, the first 100 days are key and we know well that you must start strong. Trump you will want to continue with the stimuli. And Biden, despite not being the preferred candidate on Wall Street, in all likelihood will be looking for a generous package. Will the market crash if Biden wins? It’s possible. Short term. But we must remember that Democrats are more aggressive than Republicans on tax matters. Your stimuli will be greater.
Long live Spain! How tasty the olive oil! With all this coronavirus, tourism has taken a heavy hit everywhere, but Spain is particularly dependent on this industry. But fortunately there is agriculture. Importing olive oil from Italy was that Don Vito Corleone made his fortune. At that time there was no technology blockchain and the market was organized in the Corleone way of doing things. But blockchain has arrived in Andalusia. Olé! The farm worker often falls into the hands of very inefficient marketing chains that end up benefiting the man in the middle. Here is a solution.
Unfortunately, you often find out too late about opportunities like this. Beyond the benefits or vices of the project as such, from a speculative point of view, 1,490% in a month is an impressive figure.
Why all the fuss with Yearn Finance (YFI)? Well the first thing to mention is the reduced supply. Above all, to be an altcoin. Only 30 thousand units. So here scarcity works its magic.
On the other hand, there are several factors that could be at play here. Considering that it is a project that only has a month. For brevity I’ll summarize it like this: Effect Binance, Defi-mania effect, bullish air of the moment and FOMO (fueled by crypto celebrities).
Every time someone starts talking to me about futures, I get a toothache. Futures are like a free pass for the analyst who doesn’t really know what’s going on, but needs to write a quick article before closing time (joke). “Bitcoin went up” Futures. “Bitcoin went down” Futures. It is like the wild card of the mysterious whale that is behind everything that happens. It is like the elf of old that was used to explain the inexplicable. Futures this and that. I dont know. In my experience, futures give off too many false signals.
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