Summary

The article suggests that despite recent volatility, Bitcoin's bull run is likely to continue based on historical price patterns and on-chain data analysis.

Abstract

The article on the undefined website discusses the recent volatility in Bitcoin's price, which has dropped from an all-time high of around $65,000 to a low of$ 30,000. Despite the negative sentiment in the market, the article argues that Bitcoin's long-term outlook remains positive, especially for those who have weathered previous market cycles. It cites data from PlanB's Twitter account, which includes an analysis of Bitcoin's price action relative to its halving events, indicating that the current market phase is not yet at the optimal selling point. The article also references the Relative Strength Index (RSI) and historical charts to suggest that the current price correction is normal and could precede further significant gains, drawing parallels to the 2013 market cycle. The author emphasizes that the bull run is not over and advises holding onto Bitcoin, while also reminding readers that the article is not financial advice.

Opinions

The author believes that the recent Bitcoin price drop is causing unnecessary panic and that the negative market sentiment is misplaced.
Veteran Bitcoin holders, or 'hodlers', are advised to remain calm and not sell their assets based on short-term market movements.
The article suggests that new investors who have not sold their Bitcoin during the recent dip have passed an important test of patience and discipline.
PlanB's on-chain data analysis is highlighted as a reliable source of insight, indicating that Bitcoin is still in the midst of its bull cycle.
The reset in the Relative Strength Index (RSI) is seen as a healthy development that could pave the way for further price increases.
The Halving Tracker's daily updates are recommended for providing perspective on Bitcoin's price action in relation to past halving events.
The author compares the current market cycle to the 2012 and 2013 cycles, which both experienced significant gains after a mid-cycle correction.
A clear disclaimer is provided that the article's content is for educational and entertainment purposes only and should not be taken as financial advice.

BITCOIN

These Charts Tell us That Bitcoin is Not Finished Yet

Put your space helmets on boys, we’re going to the moon.

Photo by André François McKenzie on Unsplash

Bitcoin holders have experienced some gnarly price action recently. From an all-time high of just above 65k to a recent low of 30k. Panic selling has begun and the rhetoric in the market is painfully negative, but mark my words, this sentiment is misplaced.

Hodlers have been here before

If you’ve been holding Bitcoin for a long time, then you will probably be unfazed by the latest drop. You’re a veteran of this war and will not be separated from your crypto because the markets upset by a few tweets from the Martian king. You know the deal.

If you’re new to the space, then you may be riddled with fear. Perhaps you’re amongst the people who have already sold their holdings at a loss. If you haven’t sold (well done, you passed your first test) then you may be looking for some reassurance that your investment is still wise. There’s no better place to find this solace than in the data and charts.

The data

If you don’t already follow PlanB on Twitter then rectify this now, you will find a continuous wealth of knowledge here with some premium on-chain data.

So what’s going on in this chart?

The coloured dots cover the price action since 2013. Each colour indicates a different time to the next halving. The dark blue coloured dots are the closest to the time of the halving and the red dots are the furthest away.

This chart shows that the most optimum time to sell your Bitcoin is when the dots are a light orange/yellow colour. Currently, they are dark orange, meaning that we are still not in the selling phase of this cycle.

If we compare this cycle’s data to 2013, then we could assume that we are only halfway through the bull market, with new all-time highs just around the corner. It also reassures us how normal this price action is generally.

A parabolic rise followed the dip in 2013. This could be what’s happening now.

Image captured by author (Twitter of 100trillionUSD)

Another pearl of wisdom from PlanB, this chart is looking at the relative strength index (RSI). The last two cycles both had a drop around this time. This is super healthy, now the RSI has reset it can allow for further gains. Without a drop like this, it would be difficult for the price to continue rising.

A second Twitter account to add to your following list is the Halving Tracker, the account does what it says on the tin. It tracks the price action relative to the halving. Every day they post a new chart with the latest data included.

Personally I check this chart daily. It provides some much needed perspective, especially at times like this.

The halving tracker has the last two cycles, the current cycle and an average.

You will notice that the first cycle had a double peak, an initial ATH followed by a dump and then resumption to higher highs. The current price correction could be an indicator of a similar cycle to 2012. If that’s the case then it’s only a good thing, because the price increased by over 2000% from the dip.

Image captured by author (Twitter of HalvingTracker)

What’s the takeaway from all of these charts? The bull run is far from over. HODL.

DISCLAIMER

I am not a financial advisor. This is not financial advice. This article is for educational and entertainment purposes only. The information in this article does not constitute or is intended to be investment, financial, trading, or any other advice. The information in this article is general and in no way specific to you or any reader. Before making any financial? decisions, be it an investment, trade, or otherwise, always consult with a registered professional or financial advisor.

Delilah Brass

May 2021