Bitcoins’ actual value
Bitcoin allows getting easily confused. How does it work? What is it worth? Why all the hype? Curiosity aches to get satisfied, but again, there is always a debate if you read up in the news. El Salvador recently allowing it next to the US-Dollar as a legal tender created two camps again. Bitcoin fans see a major breakthrough in a country legalizing the tender. Opponents find a country like El Salvador not credible enough. Whom to trust? You need to ask yourself only one question: “Why would there be so much emotional investment for over ten years already into something worth nothing?” Bitcoins’ actual value.
No hype lasts that long. What can stay this long is doubt, if not fear, about something new. Change is certainly something many are afraid about. You can touch Gold, build real estate, see land, and it all has history, but that history also includes in all tangible asset classes there to be times when it got taxed or seized.
What we are facing now could be a larger cycle that one might intellectually grasp, but who does believe that we see times of hyperinflation and the dollar rendering worthless. Very few. Hope is a natural tendency of the human spirit to be trusted in at times of adversity.
In our opinion, that is the only reason why Bitcoin is still so cheap. And herein lies the opportunity for each individual to still preserve their wealth and or create it.
BTC-USD, Daily Chart, Worthwhile a shot:
Bitcoin in US-Dollar, daily chart as of June 14th, 2021
Consequently, to our conviction that Bitcoin can not be thought away anymore, we took three low-risk entries after Bitcoins’ recent decline into the congestion range. We posted these entries in real-time in our free Telegram channel. We took partial profits on all three trades to eliminate risk and by now have raised the stops to break even entry levels for the remainder of exposed capital.
After news that Tanzania might join El Salvador in accepting Bitcoin as one of the main payment method methods, prices soared to break through the upper triangle resistance line. What was resistance has now become support. The most substantial supply zone to price is near the POC (point of control, most transaction volume at this price level).
Another sign of strength is that at the last decline, prices only managed to go as far down at US$35,000, a far cry from previous US$33,000 levels, indicating strength.
BTC-USD, Weekly Chart, Two bullish scenarios:
Bitcoin in US-Dollar, weekly chart as of June 14th, 2021
Looking at the weekly chart, we can determine that Bitcoin now has cemented a nice double bottom slightly above US$30,000 (yellow line) after a strong down move. We find three high-volume nodes supporting price (green horizontal lines).
Noteworthy as well is that the point of this reversal has happened right at the mean (white directional channel with blue dotted line). Consequently, we anticipate two scenarios (A, B) to be the most likely price behavior of the future. Should more fundamental data flow into the market supporting Bitcoins recently gained upward momentum, scenario A is expected to be found over the third quarter.
If the bears would be temporarily successful, we anticipate them not driving prices lower than US$27,500. We would see price only briefly giving way to the downside to snap back up with vigor.
BTC-USD, Monthly Chart, Up, up, and up:
Bitcoin in US-Dollar, monthly chart as of June 14th, 2021
What always reveals the fundamental forces at play and the leading guidance for a trader’s choice of trading tools/systems are the larger time frames. Examining the monthly chart, we can see the strength and direction where Bitcoin is most likely to head. Price turning at the midpoint of the linear regression channel is no accident. We see a high likelihood for this month to end in a green candle and consequently for July as well.
It doesn’t matter where you look; the opinions are always torn into two camps for Bitcoin. Recent attacks of Bitcoin not being green due to its energy consumption provided for much debate again. We are not taking sides. It again seems more principle-based to view from a larger perspective why people put numbers on value output ranges of energies merely based on an emotional basis. Electric cars and wind energy were fought at their time just as well.
Bitcoins’ actual value:
As investors, we never have a sure bet. We try to stack the odds in our favor, and with sensible money management produce in the trades, we engage in more profits on the winning trades versus the losing trades losses. Bitcoin is no different! Don’t bet the farm and pick low-risk entry points. We do not think it to be wise to have extreme opinions in either direction. Or in other words, any form of emotional engagement in the markets is typically not producing favorable results. What we are empathetic about though is, that doubting Bitcoin on a fundamental basis is simply being ignorant of a vehicle with proven facts.
Engaging in this market has its rewards for sure. It might turn out to be one of the better long-term trades in challenging times. Bitcoins’ actual value is yet to be determined by a future no one knows, but its credibility is unquestioned.
Join our free Telegram Group :https://t.me/joinchat/HGe22hDDEEl0LvFGAgEZ9g
All published information represents the opinion and analysis of Mr Korbinian Koller & his partners, based on data available to him, at the time of writing. Mr. Koller’s opinions are his own and are not a recommendation or an offer to buy or sell securities. Mr. Koller is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations. As trading and investing in any financial markets may involve serious risk of loss, Mr. Koller recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications.
Although a qualified and experienced stock market analyst, Korbinian Koller is not a Registered Securities Advisor. Therefore Mr. Koller’s opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction. Past results are not necessarily indicative of future results. The passing on and reproduction of this report, analysis or information within the membership area is only legal with a written permission of the author.
RISK DISCLAIMER: All forms of trading carry a high level of risk so you should only speculate with money you can afford to lose. You can lose more than your initial deposit and stake. Please ensure your chosen method matches your investment objectives, familiarize yourself with the risks involved and if necessary seek independent advice.
U.S. Government Required Disclaimer - Commodity Futures Trading Commission. Trading financial instruments of any kind including options, futures and securities have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the options, futures and stock markets. Don't trade with money you can't afford to lose.
NFA and CTFC Required Disclaimers: Trading in the Foreign Exchange market is a challenging opportunity where above average returns are available for educated and experienced investors who are willing to take above average risk. However, before deciding to participate in Foreign Exchange (FX) trading, you should carefully consider your investment objectives, level of experience and risk appetite. Do not invest money you cannot afford to lose.
EARNINGS DISCLAIMER: EVERY EFFORT HAS BEEN MADE TO ACCURATELY REPRESENT THIS PRODUCT AND ITS POTENTIAL. THERE IS NO GUARANTEE THAT YOU WILL EARN ANY MONEY USING THE TECHNIQUES, IDEAS OR PRODUCTS PRESENTED. EXAMPLES PRESENTED ARE NOT TO BE INTERPRETED AS A PROMISE OR GUARANTEE OF EARNINGS.
CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAN ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
All information presented or any product purchased from this website is for educational and research purposes only and is not intended to provide financial advice. Any statement about profits or income, expressed or implied, does not represent a guarantee. This presentation is neither a solicitation nor an offer to Buy/Sell options, futures stocks or securities. No representation is being made that any information you receive will or is likely to achieve profits or losses similar to those discussed on this website. The past performance of any trading system or methodology is not necessarily indicative of future results. Please use common sense. Get the advice of a competent financial advisor before investing your money in any financial instrument.