- A digital lockdown induced by COVID-19 has led to a wider acceptance of all things digital. The globe has been exposed to digital meetings, digital work, so the idea of a digital currency is conceptually easier to understand.
- A greater acceptance of digital currencies by central banks. The fact that the ECB has recently announced that they are considering what it would be like having a digital euro is a reminder of the growing expression of that acceptance.
- El Salvador, which embraced Bitcoin as legal tender, is a nation with a 70% cash economy, so cash is generally king. However, villagers and farmers are now actually using Bitcoin to send small amounts to buy fruits and vegetables. The more this happens across the globe, the better news this is for Bitcoin prices.
- Whales (those holding between 1k-10K Bitcoins) have started accumulating their positions again after rescuing them between March and May this year when BTC was up in the $60,000 area.
- The amount of energy to mine BTC is a major negative. Environmental concerns are growing and the power usage to mine BTC is a major negatives.
- Volatility. Who wants to adopt a form of exchange that moves up and down in a double digit way regularly? It’s a big turn off to anyone who isn’t speculative by nature
- Regulation. BTC is a buzz word that also generates scam artists, fly by nights, and lures in the desperate. So, Governments, concerned for their citizens are increasing the regulation. The less that people can access and use BTC the less chance it has at sticking for the long haul.
Ok, this is a balanced market in many ways, However, accumulation looks to be in place (see point above). So the place to enter, for a low-risk high reward entry would be as follows:
- Entry: $20,000
- Stop: $15,000
- TP: At your discretion