Bitcoin has fallen again during the session on Monday, after going sideways for the last couple of days.
- Looking at the Bitcoin chart, it looks as if we are going to continue to drop from here.
- The $16,000 level has offered a little bit of support, and I think it is more likely than not going to continue to be chipped away at, before we break down.
- In that scenario, we should continue to go down to the $15,000 level, any break below the $15,000 level will almost certainly cause all kinds of havoc in this market.
Downward Pressure and Potential Breakdown
I believe at this point in time we are more likely than not going to continue to see downward pressure and a potential breakdown of significance. If we break down below the $15,000 level, I think we then go looking to the $12,000 level underneath, which is where we started the entire uptrend over the last couple of years. I do believe that we are eventually going to do the “round-trip” to get back down there, as crypto is all but dead. The massive amounts of fraud and Ponzi schemes out there will continue to keep people away from crypto, and the fact that we are getting ready to see Central Bank Digital Currencies come onto the scene, also suggests that perhaps Bitcoin may or may not have a future. Yes, I understand that Bitcoin is a religion, but at the end of the day, it’s very difficult to imagine that the overall general public is going to come flooding to use a currency that quite frankly is a lot more difficult than a debit card. Remember, if your Aunt Millie is going to struggle to use Bitcoin, that’s a huge part of the population that has no interest in trying to figure out the blockchain or all of the nonsense that goes with making a separate transaction.
Do not get me wrong, I’m completely fine with speculating on this asset when there is a reason to. At this point, the only reason to speculate on this asset is if you have the ability to short Bitcoin and make some money doing that. There are plenty of people out there that will hang on for dear life, and they will also go broke given enough time. There are an inordinate amount of people out there that bought Bitcoin at much higher levels and are hanging onto it and praying. Praying is not a risk management process.
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