Two things happened last week in Bitcoin ( BTC ).
One, the Chinese president used original language about dominating blockchain to achieve an important objective. Namely, get people excited about crypto as a way of challenging the dollar as the world's reserve currency. The Chinese have been trying to do it with Gold for a decade, and it hasn't worked. So, now they want to use the power of crypto. And we think it's going to work.
The second thing that happened is that a Bronx Congresswoman nicknamed "AOC" endorsed Bernie Sanders for President on the same day. AOC is young, and a lot of young voters will follow her lead. Bernie's logical choice for VP will be Elizabeth Warren. Warren has espoused a wealth tax on high-net-worth individuals. Read: the government goes into your account at a brokerage firm or bank and takes your money. With crypto, the concept of cold storage and private keys, and privacy coins will no doubt gain traction. 60% of the U.S. electorate is young people who have been adversely affected by the events of 2008. They will be very amenable to both crypto and left-wing politics that drive the wealthy towards crypto.
To us, the Bitcoin ( BTC ) futures chart seems the best way to navigate. In retrospect, the 200-day moving average on the BTC1 chart acted as support and bottomed the market (black line). The zone between 10k and 9700 is a big horizontal resistance point. We expect that zone to be resistance for five days. Frequently, significant price gaps on the BTC futures chart get filled before the trend has resumed higher (blue arrows). This means there is a chance of getting a dip to 8700. That would be a great buying opportunity.
Bottom Line: The world has changed. BTFD until proved wrong.
DISCLOSURE: Token Metrics is a regular publication of information, analysis and commentary and does not provide individually tailored investment advice. The Token Metrics team has invested and advised in many blockchain companies. A complete list of the team disclosures, advisory roles and current holdings can be viewed here: https://blog.tokenmetrics.com/disclosures/.