Bitcoin’s retracement is following the stock to flow model. This is from last week but this retracement is tiny compared to how far Bitcoin has come. It has seen 1000% growth since March 2020!:
I have been made aware of fractals in the stock to flow model. Here is a recent version of the model:
At each halving the white line designates the bitcoin supply (hashrate). It goes straight up and supply is cut. Bitcoin price eventually catches up. On this stock to flow model, Bitcoin is about to print an orange dot where it has been red. That is significant. Whenever, Bitcoin completes the re-accumulation it is in right now, the orange dot would have already printed by then. A dot is monthly. There may be several orange dots printed before Bitcoin makes a major move. It will begin price appretiation growth until it meets the white line. As of 1/13/21 we are very close to that white line. We could experience extended time re-accumulating, and that means very little price appreciation in Bitcoin. It appears this bull run is mimicking the 2012-2013 bull run moreso than the 2016-2017 bull run. Notice the last red dots were down and the first orange dots were price neutral or sideways price action. This was an extended period of time. 4 or 5 months. Bitcoin may very well do something similar. An extended re-accumulation would shake out fearful investors! Neutral ATM will not be such an investor. We will sell no Bitcoin! We are buying up Bitcoin as fast as we can. We are expanding more and more Bitcoin ATM machines so others can accumulate Bitcoin under $40K. It will not drop much below $40K in the bear market of 2023! This is the bottom area for Bitcoin price action. Now is the chance for hodlers to accumulate! Mid year 2021, Bitcoin may very well experience massive, parabolic growth. This is the ryme or the repeated structure from the 2012-2013 bull market that we see in the stock to flow model. www.cryptocrewuniversity.com is an excellent source for technical analysis training. We analyze the chart and the history of Bitcoin to ascertain what it will do in 2021. This is our strategy. Accumulate Bitcoin now, it will jump up big in the next few months!
This next chart details possibly why Bitcoin is re-accumulating and may stay in this pattern for an extended period of time. The SPX is in a long term, 10 month rising wedge (bearish), the DXY (US dollar index) is in a 10 month falling wedge (bullish). We see a stock market crash and rush back into USD. Northman Trader is a great source on this. Sven Hendrickson knows what he is putting out there. Ral Paoul of Real Vision agrees 100%. See the chart:
If this does happen. Will Bitcoin clearly break the very weak coorelation to stocks? We see a possible future pull back as Bitcoin goes through this re-accumulation. But accumulating throughout this time period is better than attempting to time it perfectly. Dollar cost average into Bitcoin, if it dumps, you can catch it then. Take advantage of this opportunity. Bitcoin is far from the top of this bull run. Neutral ATM sees this re-accumulation period as being prolonged. Possibly a few months. Time will tell and clear up what we cannot see today.
Neutral ATM sells and buys Bitcoin as little as $20 at a time! You do NOT have to buy an entire Bitcoin. Neutral ATM is here to get everyone off of zero Bitcoin.
Give Neutral ATM a try. We have low rates, convenient locations and we are expanding. Contact Neutral ATM, we will answer all your questions about Bitcoin and using our ATM machines. Find a Neutral ATM Bitcoin machine location near you.