Dr. Jeff on Nostr: Just got triggered by another bitcoin analyst write-up. So, for like the zillionth ...
Just got triggered by another bitcoin analyst write-up.
So, for like the zillionth time...
The last six months of price consolidation "at or near the 2021 highs" is NOT ATYPICAL OR UNUSUAL if you understand that:
1. The 2021 bitcoin price high of approximately $69k was an (abnormally low) anomaly, historically-speaking... and *should have* been closer to $125k.
2. The anomaly was caused primarily by China's sudden and effective ban of Bitcoin mining, which caused the hash rate to drop precipitously by approximately 50% in the spring/summer months of 2021. By the time hash rate recovered, the liquidity and leverage wave of late 2021 had reached its peak, limiting further upside price action.
3. Once understood, the current post-halving rangebound consolidation of approximately 40-60% of $125k (range: $50k-75k) is TOTALLY NORMAL and quite similar to 2H 2016 and 2H 2020 price action.
Hopefully this makes sense and is helpful to those who are despairing and/or are new to bitcoin.
Cheers. 🍻
So, for like the zillionth time...
The last six months of price consolidation "at or near the 2021 highs" is NOT ATYPICAL OR UNUSUAL if you understand that:
1. The 2021 bitcoin price high of approximately $69k was an (abnormally low) anomaly, historically-speaking... and *should have* been closer to $125k.
2. The anomaly was caused primarily by China's sudden and effective ban of Bitcoin mining, which caused the hash rate to drop precipitously by approximately 50% in the spring/summer months of 2021. By the time hash rate recovered, the liquidity and leverage wave of late 2021 had reached its peak, limiting further upside price action.
3. Once understood, the current post-halving rangebound consolidation of approximately 40-60% of $125k (range: $50k-75k) is TOTALLY NORMAL and quite similar to 2H 2016 and 2H 2020 price action.
Hopefully this makes sense and is helpful to those who are despairing and/or are new to bitcoin.
Cheers. 🍻