Bitcoin Broke $50K for the First Time Since May 14 – What’s Next?
Bitcoin is heading straight for a new ATH in the coming weeks.
Bitcoin just broke the $50K barrier for the first time since May 14, 2021. At the time, we were on the verge of a Bitcoin price crash triggered by the ban on Bitcoin mining in China and accentuated by Elon Musk's tweets.
Many people fell into a state of doubt. The market sank into extreme fear with the price briefly dropping back below $30K to $29K.
At this point, a majority of people were telling us that the price of Bitcoin was likely to go to $20K before it got close to $50K again. Some people were even talking about a Bear Market. What is happening today is a great lesson for all of these people.
A great lesson to learn about Bitcoin
The lesson is that you should never doubt Bitcoin.
It is when it is under attack that Bitcoin shows itself to be the strongest and most resilient. Whether the price of Bitcoin is $29K or $50K does not fundamentally change the long-term value of Bitcoin.
Indeed, Bitcoin is the most undervalued asset relative to its fundamentals. I am referring to the three fundamental freedoms that Bitcoin guarantees you:
Freedom to send BTC.
Freedom to receive BTC.
Freedom to HODL BTC.
Combined, these three freedoms allow you to live your life on your own terms. A minority of people currently holding Bitcoin really understand this. Yet it is the key to Bitcoin's future success. Bitcoin is about giving you back the power over your money.
This is what will allow the demand for Bitcoin to explode in the years to come. With a limited supply of 21 million units no matter what, it is clear that the price of Bitcoin will reach heights that many did not dare imagine even 5 years ago.
There are at least 5 major reasons why Bitcoin is back at $50K
While the market is currently in a state of euphoria with extreme greed, the reasons for the Bitcoin price's comeback make perfect sense. I see five obvious ones in particular:
A strong rebound was observed for the Bitcoin Hash Rate. This proves to us that Bitcoin is stronger than a state as powerful as China. Bitcoin mining will sooner or later surpass its previous ATH in the coming months. The difference will be that the global epicenter of Bitcoin mining will be in North America in the future.
The strong hands have been accumulating more and more BTC since the May 2021 crash. While the weak hands were selling and panicking, those who can take a long-term view of things were able to take advantage of this unique opportunity.
The short squeeze took place on the futures market between July 21 and 26, 2021.
Massive buying on the various trading platforms following this short squeeze.
BTC miners have been slowing down their BTC sales since the May 2021 crash.
What’s next for Bitcoin price?
Now that the price of Bitcoin has crossed the $50K mark again, many are wondering what to expect in the coming weeks. Some are talking about a dead cat bounce, explaining that we are still in a Bear Market. This is clearly not my feeling.
We are in the middle of the second impulse of this Bull Market.
In the short term, it seems obvious that we will retest the $48K-$49K. This is what seems to be happening as I write this article as the price of Bitcoin has just dropped back below $50K to $49.5K.
We will have to watch how the price of Bitcoin behaves on this support. The ideal would be a rebound above $50K to test $51K. The next step would probably be the generation of Higher Lows and Higher Highs as we have seen around $45K in the last few days.
If that happens, we could be headed for $57K. A new Bitcoin ATH would then only be a matter of days away. All of this is obviously just my feeling. You can use it to make up your own mind.
Some reading
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The American Debacle in Afghanistan Is the Work of Donald Trump, Not Joe Biden - Negotiating only with the Taliban and excluding the Afghan army was the worst signal to send.
Once-in-Lifetime Opportunity — $1,000 Invested in Bitcoin Ten Years Ago Is Now $4,669,480 - Big tech companies have outperformed for 10 years, but Bitcoin remains in a league of its own.