Bitcoin Is Up 40% In 2023; Here's Where It Goes Next
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Loading... - Chiyo Gato
- 13 Feb 2023
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Two months ago, we announced that we are buying Bitcoin (BTC-USD) in the analysis: “Bitcoin is Going to Rally Again, Here’s What you Need to Know."
Here is what we said on December 9th:
Though we are in the 4th bear cycle in Bitcoin's history, the prior 3 cycles suggest where we are is a rare buying opportunity. There is ample evidence to support the $15,500 level is either a major low or very close to a major low. Both the technical and on-chain analysis support this.
Due to technical analysis coupled with the on-chain analysis provided by WealthUmbrella, it became evident that we were at a major low and we alerted our followers to this important moment. Since then, Bitcoin is up 40%, and we view the next correction as potentially another moment when we may add to our position.
Below, we update the new developments in Bitcoin’s price patterns as well as the on-chain metrics that we tend to see around historic lows. We will also take a look at the fundamental thesis surrounding Bitcoin’s utility, and why a globally indebted economy coupled with structural inflation will only benefit from Bitcoin.
Our first sign of this problem happened when the Bank of England abandoned its fight against inflation to support its currency. This was recently followed when we saw signs that the Bank of Japan could potentially lose control of its bond market, as they started bending to inflationary pressures. It appears that central banks are being boxed into a winless corner where they have to choose between fighting inflation or causing a fiscal spiral in their economies. As these problems grow, Bitcoin’s alternative to centralized fiat system will become more attractive, which I believe is showing up in the price action.
The Bank of Japan, Inflation, and Bitcoin
Last month, the Bank of Japan (BoJ) surprised markets by widening their 10-year treasury bond from 0.25% to 0.50%. This may seem small, but this move roiled markets and sent ripple effects across asset classes globally, The reason the change in bond yields had a strong effect is because Japan has excessive public debt, and the concern is it will cost more for Japan to now service this debt. Read More…
