Up over 19% YTD, Bitcoin is currently trading at $8,670 with 24 hours gains of 0.29% while managing the daily trading volume of about $700 million, down from last week’s over a billion-dollar on top ten exchanges with real volume, as per Messari.
Beatings will continue until morale evaporates
These gains might have the market excited but in the short term, it might not be. TraderXO has been bearish for quite a few months now.
“Genuinely believe if we break down to the lows of 5-6.5k again over the next few months… I’d probably become super bullish there” said the trader.
Just like TraderXO, prominent analyst Majin has been bearish on BTC price while everyone has been ecstatic of the bull run and calling out a rally. Bitcoin’s rejection of $9,200 on the weekend he said was a “major key.”
Now, he is expecting the price to “break support after support, eventually cascading to lows below 6.4.”
Bitcoin can’t bounce forever from $8,500 without making any progress on reclaiming higher levels though this journey to $6,400, there would be many support levels as well. But if BTC manages to close above $9,200 level, it would “totally invalidate” this thesis.
“The beatings will simply continue until morale evaporates,” said Majin.
But next parabolic run will find top above $75,000
In the short term, the market has a lot of ups and downs coming but for BTC holders it’s hardly a matter of concern. Bitcoin has been one of the best-performing assets on a risk-adjusted basis over the past decade and as cryptographer Nick Szabo notes, “Successful Bitcoin holders have low time preference & judge over extended periods, e.g. risk-adjusted return over 4-year holding periods.”
And as history tells us a weekly close above the 0.65 Fibonacci will send the flagship cryptocurrency into a new parabolic run. This parabolic run could see BTC finding its top above $75,000 this time.
However, even this is a conservative number if we take into account the big shift coming into the workforce.
The percentage of millennials joining the workforce in 2025 although is much closer to 40% in the US and over 50% in Africa, a big shift asGemini co-founder Cameron Winklevoss notes is definitely coming.
This combined with the fact that millennials are anticipated to inherit over $68 trillion from their Baby Boomer parents by 2030, this unprecedented hand-off-of wealth will cause some ripples in the economy.
And if even 1% of this wealth moves into Bitcoin, it could very easily be a trillion-dollar asset class.
Millennials to drive the BTC market
Already these millennials prefer Bitcoin over Netflix, Walt Disney, and Microsoft as a report from investment giant Charles Schwab showed.
Also, Brooke R. Stoddard Director of Sales at Grayscale Investment, a digital currency investing and cryptocurrency asset management company notes that 20% of millennials purchased bitcoin in the past year.
Not to forget, Bitcoin’s awareness is growing like crazy. In the US, its awareness grew from 77% in the fall of 2017 to 89% in the Spring of 2019. This increment has been despite the price of the digital asset falling 84% in 2018 and still being down over 55% from 2017 high of $20,000.
“The more familiar people are, the harder the fomo will kick in. Wait until they start hearing about BTC reaching a new all-time high this bull run,” said analyst Misir Mahmudov.