To The Moon

The train has left the station, or has it really? The boring but important question to ask is why has the price of bitcoin run up. More interesting question in everyone’s mind is where to from here.

Before I attempt to answer the more interesting question, let’s first visit the boring but important question.

As we can see from the above charts, the only thing that is consistently down is USD. Yep, as I had mentioned several times in various articles that USD is going to the dogs. You don’t need to be an analyst to see the obvious pattern of USD coming down overtime across different platforms. The obvious answer is trust, or the lack of it with the US administration.

From the above charts, we can tell that various central bankers have actually lost faith on USD and loading up on alternative financial assets classes, such as gold, silver, even platinum and other currency bonds. Financial institutions and other private funds would naturally also look for alternatives to park their money.

It gets worse when even the US President, Donald Trump has given up on USD. That is part of the reason why Donald Trump has turned to support cryptocurrencies such as bitcoin. Knowing that USD is weakening, his self-centred nature obviously seeks to enrich himself and his family by increasing their wealth with cryptocurrency.

As we now know the reason for bitcoin to move up, we get to the more interesting question of how high would it go. 

We can use the secondary charts to give us some clues. RSI indicators are positive but not overbought. MACD indicators are positively positioned and signalling rally has its legs, while volume is not as high as many would have expected if there’s euphoria in participation. All these indicators just show that rally is not done in the short to mid terms. This could easily take us to $115k and $120k, both beautiful numbers market like. I am not sure about $150k or $200k, but once $120k is taken out, they would be in play too!

I won’t bet against bitcoin because I am betting against USD. However, I am mainly using gold, silver, etc for my bets. I would expect silver, platinum and even palladium to lead the charge against the drop of USD. Gold, once it’s done with its consolidation, would follow suite…

One word of caution though for crypto enthusiasts. I won’t say the same for stablecoins. They are mainly issued in USD and given the instability of USD (irony), makes the whole concept of stablecoins untenable.

@TigerClub @Tiger_comments @Daily_Discussion @TigerStars @CaptainTiger 

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