Hello everyone,
The purpose of this letter is to inform you about the current situation of the crypto-asset market. This letter is not investment advice, but merely a sharing of my personal point of view.
At the time of writing, the price of Bitcoin is 46,500 $. We have broken upward through the 42,000 $ resistance level. Surpassing this resistance revives the long-term bull market that was cut short prematurely by the price drop from mid-May to mid-July.
Over the past few months, investors have been put to a severe test seeing prices correct for several weeks while long-term indicators were clearly bullish. As we specified in our previous letter «Fundamentals always prevail in the long run.
- Long-term cycle: The bull market is resuming the start of its second bull leg, which could bring us to a price range between 80k and 120k $ per Bitcoin. User growth continues to increase parabolically. The fundamentals of the crypto-asset sector and Bitcoin remain in the green. The strong decorrelation between the price of Bitcoin and the fundamentals has been partially bridged as the market realized it was undervaluing the price. The supply shock has materialized and the price has adjusted upward. Conclusion: mid-bull market (long term).
- Medium-term cycle: All types of investors are buying: Whales (1000+ BTC) and super whales (10,000+ BTC) shifted to accumulating new Bitcoin coins during the price drop in recent months. Then, average holders (between 100-1000 BTC) and retail investors (<1 BTC) also shifted to buying more recently. Conclusion: bull market (medium-term, 3 months).
- Short-term cycle: Long-term investors bought at the breakout of the $42,000 $ per BTC resistance level. This pattern is expected to repeat at the breakout of the $50,000 $ per BTC level. Many long-term buyers will be present, which should accelerate the upward trend beyond $50,000 $. The $50,000 $ resistance is solid, but it should eventually break, fostering a new wave of widespread market enthusiasm. Conclusion: bullish market (short term, 1 month).
large quantities of stablecoins are held by all investors. This means that large amounts of money are ready to flow into buying crypto-assets, as investors still want to take advantage of this two-phase bull market. These stablecoins (USDT, USDC, DAI, etc.) show that investors do not want to leave the crypto-asset sphere. Moreover, most of them are putting their assets to work in the world of DeFi.
According to certain metrics, notably that of the Supply Shock (bid-ask spread), we can define a price for Bitcoin's current intrinsic value (always to be taken with a grain of salt), around 55,000 $ per bitcoin.
News
The implementation by the president of El Salvador, Nayib Bukele, of the «Bitcoin Law» (Bitcoin Law) was approved by the Legislative Assembly on June 9, 2021. This law will very soon make the king of cryptos the second legal tender in the country, alongside the US dollar.
You can also discover our latest article about debt-based currencies and value-based currencies. We are talking about how to preserve one's wealth with currency assets and central banks (Fed, ECB, etc.) that are trapped in the paradigm of their own money-printing strategies.
If you have any questions, comments, or would like to know more about our service, please feel free to contact us: crypto.assets.manage@gmail.com
— Warning —
This is not investment advice, no one can predict the future.
You are solely responsible for your own investment decisions.
We are not responsible for any losses resulting from a decision made based on the information in this letter.
