It's annoying to look at substantial buys that trigger a ton of sells as soon as barely touching $112k right now.
A bit more momentum and shorts would be eaten up in a short while.
Eh it's just the weak hands shaking out at 111k.
HODL.
Question is..why there are those "weak hands" at a seemingly irrelevant value of 111K? A rhetorical question.
My "proposed" local top of, hopefully 216K, might occur if and when MSTR joins SP500, which could be in September.
Interestingly, there was a local top (the first in the double hump in 2021) when Coinbase IPOed.
Some people started talking about $444-475K (or 0.444-475M
), but for now this seem a bit excessively optimistic.
Well we went under 109 k from jan 20 until a day or two ago.
111k is clear better than 109k
and they got in at 74k on the correction a month or so ago they are now up exactly 50%
1.5 x 74 =111 so my guess is they are simply taking profits from the dip buy.
if they grabbed 10 coins at 74k they paid 740k if they cash 8 of them they get 888k and not have 2 free BTC plus a few worthless dollars after taxes.
Say 30k cash after tax and 2 coins.
They can now wait for a dip to get more.
Or hodl the 2 "free" coins and wait for price to go way up say 250 a coin.
It is hard to turn down sure winning moves if they arise.
Not a winning move, imho, as it is very short-sighted.
EDIT the scenario Nick is proposing in a clip below (a supply squeeze and a spike) is actually quite possible:
https://www.youtube.com/watch?v=0A58iIfsyBEbut it is not certain.
what I described is a certain win
with all taxes paid
30k cash
2 btc
for letting the 740k purchase made a month ago ride for 30-40 days.
so in addition to the profits above
you also have you complete investment starter money of 740k sitting where ever.
Many players make this type of move 1 or 2 times a year if they can.
It is safer and is a certain win
They can do whatever they want with the 30 cash and the 740k cash principal.
You are likely correct that a lot of folks trade bitcoin in the manner that you are saying, and many of them are similar to you in terms of hardly having any bitcoin, so they end up being long term losers because they end up selling way too much too soon with their ideas of locking in dollar profits.
Remember just over 10 years bitcoin has returned around 444x in profits from $250 to $111k. Very difficult to even come close to matching that with piddly trades and the piddly trades do not end up getting the compounding profits.. doubling upon doubling upon doubling..
You pointing out the importance of hodling bitcoin for the long term as well as the power of compounding in Bitcoin investments. Yeah, a lot of investors believes the best strategy to bitcoin investment is locking in some dollar profits and this is mostly the trader's mindset, and they often fail to realize that when they constantly do this, they may actually end up missing out on potential returns that usually comes from Hodling on to their Bitcoin over a long period of time.
Bitcoin's historical price growth can be seen as a testament to just how much potentials for massive returns Bitcoin has when hodled for the long term. Just like you stated, with returns of over 444x over just a decade, it's living proof that Hodling through the volatile market, the storms and the usual ups and downs can actually turn out to be incredibly profitable, more profitable than constantly selling off your bitcoin when there's a little short term price pump in the market.
