Crypto Chartbook: Bitcoin, Nothing Will Edge Me Out

Keep calm and keep trading Bitcoin (BITCOMP). Easier said than done after last week’s trading action. In times like these, emotions flare up, and in this constant field of uncertainties, one aches even more for anything that supports the need of feeling in control. The fact is that volatility and retracements of this size are typical for Bitcoin. We will illustrate this in this article. Bitcoin, nothing will edge me out.

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Yes, a trillion US-Dollar was lost last week in the crypto space, and yes, Elon Musk’s tweets influence Bitcoin that can make one weary or doubtful. More substantial, regulatory concerns got cemented by Federal Reserve Chairman Jerome Powell calling cryptocurrencies risky and talking about the implementation of digital currency. This aligning with Chinas crypto ban and their digital yuan release planned. The treasury department was putting a cherry on top of the worry cake, stating that any US$10,000 or more transaction value shall require reporting to the IRS in the future.

These shakeup attempts are nothing new, neither are steep price declines. It is pretty common once new inventions start hitting the mainstream, prominent figures gain temporary influence with their opinions. Regulation is THE battle in the discussion about Bitcoin since Bitcoin offers decentralization. That is precisely the reason why bans and centralized digital currencies will gain neither the trust nor the attractiveness of use. In short, Bitcoin isn’t just here to stay. Bitcoin as usual, will after more significant retracements like the one last week, not just advance on a near term basis but also rise to new all-time highs in the long term.

BTC-USD, Weekly Chart, Keep calm and keep trading Bitcoin:

Bitcoin in US-Dollar, weekly chart as of May 24th, 2021.

Bitcoin in US-Dollar, weekly chart as of May 24th, 2021.

Our optimism about Bitcoin’s trend continuation isn’t based on emotional beliefs but factual past of this volatile trading instrument’s volatility. The weekly chart above shows clearly that large retracements from significant highs are standard. It also indicates that consistently old highs are taken out, and a strong directional trend throughout the years has been persistent.

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Disclaimer: All published information represents the opinion and analysis of Mr Florian Grummes & his partners, based on data available to him, at the time of writing. Mr. Grummes’s ...

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