Crypto Set To Go Much Higher
Contributed Opinion

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We got the big move that we expected in Bitcoin that was predicted in the early November update, with most of it occurring in the two weeks or so after Trump won the election with a clear majority. However, during the past few weeks the advance has ground to a halt and the question now is whether Bitcoin has peaked for now or whether this is just a consolidation that will lead to renewed advance.

The 3-month chart shows recent action to advantage. At first glance it looks like a bullish Ascending Triangle has formed over the past several weeks beneath a line of resistance that will lead to another upleg, but this is belied by the heavy downside volume at times during this period and the failed breakout attempt on Thursday on huge volume that left behind a bearish looking "spinning top" candle on the chart, suggesting that a reaction is probably nigh.

Zooming out, the 2-year chart enables us to see that the large trading range that formed in Bitcoin during much of this year turned out to be a big bull Flag, thanks to the Trump victory, and we can also see that the strong advance of recent weeks has fulfilled the measuring requirements and, since it resulted in Bitcoin becoming record overbought, it calls for a period of consolidation / reaction which is already in train.

The 9-year chart is most illuminating as it shows us that Bitcoin has been steered higher by the huge parabolic uptrend shown. A key point to note here is that, overbought or not, whilst the price remains above this parabolic uptrend there is little to prevent further near-vertical ascent and there is now a fertile environment for this to occur.

A core mission of Trump is to get the public to fall in love with cryptos in order to make it easier to corral them into the waiting trap of CBDCs, which are already lined up and waiting to go, and to this end, Central Banks will continue to create vast quantities of new money with which to stabilize the debt market and drive rates down, thus forcing funds to seek yield in the stock market and cryptos, and this will also enable Central Banks and mega-banks to advance towards their objective which is to own everything.

The easiest way to get the investing public to fall in love with cryptos is for Trump to endorse them, which he already has with his stated intent to make the U.S. "the cryptos capital of the world" and then to create the circumstances necessary to drive their prices higher and higher, i.e., create massive amounts of new money and drive down interest rates.

The logical conclusion to all this, then, is that, overbought or not, Bitcoin and other cryptos are set to go much much higher, even if we first see a short to medium-term correction, which the charts suggest is likely and this being so any such correction will be viewed as an opportunity to buy or add to positions.