For the duration of this article, it’s best to assume a position of belief in Bitcoin.
With the cultish understanding that Bitcoin will one day make all its holders fabulously wealthy, it’s worth considering the recent beat of bull hooves everywhere you look around the edges of crypto markets.
But according to at least one group of experts — OKEx, to be exact — all might not be well in cryptoland.
To whit, some necessary realities might need to be addressed berfore a real rally can be acknowledged.
Hold Your Horses, Bulls
While Bitcoin’s bulls seem to wield massive sticks when they eventually go on the attack, recent weeks have only seen abandoned attempts at new highs.
As OKEx puts it:
“Before we can call a real trend reversal, we would like to evidence a positive breakout from the weekly chart (figure 2). It clearly shows that the pair is still in a downward channel.”
Additionally, OKEx makes the observation many of us understand to be obvious: China’s considerable gestures in the direction of a state-issued stablecoin is either a concern or cause for excitement, depending on your view of Bitcoin markets worldwide.
OKEx Analysts Expect Increased BTC Shorts
OKEx’s analysts also ” expect to see more short position openings in BTC after the price surge.”
One might interpret that to mean that confidence beyond the $10,000 mark is not widespread. And one wouldn’t be necessarily wrong.
As we said in the beginning, we assume that eventually Bitcoin will reach the many thousands and millions of dollars, as will other blockchain ledger-based cryptocurrencies. But this isn’t an automatic process, and left to its own, it could very well never materialize.
After everything crypto trading should have taught this market, it wouldn’t be a surprise at all if the road to $50,000 sees a dip or two as low as $1,000. Certain traders are currently bluffing Bitcoin’s momentum, thinking a safer buy will be in the $7,000 range.
If that’s possible, from our current position, why not $3,000 again, as we saw not even a year ago, or $1,000, which formerly had the same psychological power as $10,000 does today?
Just a thought a wise trader might have before going all in at $9,200 in preparation for a run to $12,000. That run, after all, might involve a pit stop at $7,000 first. If not worse. The important thing in trading, as in gambling, is to keep your work money separated from your personal bank roll. That is to say: be safe out there.