Bitcoin Success Requires Patience

CEO of BlackRock, Larry Fink mentioned his thought that Bitcoin can evolve into a global market asset.  BlackRock has $7Trillion in assets under management (AUM).  As mentioned in previous blogs, 1% allocation from BlackRock would eventually triple the price of Bitcoin based on the current $340Billion market cap.  See on twitter.

Below we show a graph of Bitcoin price action and the RSI in a line graph going back to 2011.  See the arrows in three places on each graph right before the bull market really started to take off.  If really appears from the charts that 2021 will be another historic bull run for Bitcoin.  It may delay into January breaking past and staying above the previous all time high (ATH) of $19,782.  Or it may happen this week.  We don’t know for certain.  Once the ATH level flips to support, Bitcoin is off to the races.  It is very very close to that point right now.  History never repeats but it almost always rymes:

Bitcoin is proven to be similar in each bull run, the run up may decrease every four years but gains of 8x to 14x are not far fetched for 2021.  Patience and buying dips when pull backs occur keep any investor in the black.  Neutral ATM bought very heavily March, April, May, and much less so in June, July, August.  We continue to buy in smaller quantities now.  We may slow that down again after the ATH is flipped to support for future price gains.  The point is, keep buying after Bitcoin pulls back and the price dips.  Dollar Cost Averaging (DCA) is the name of this investing approach.  Then a laddered selling approach in late 2021 or perhaps early 2022 whenever we believe we are closer to a blow off top.  Then we repeat the process when Bitcoin hits the 200 day moving average which currently is $11,500.  By 2022 or 2023, that moving average should be much higher, above $20,000.  Thus, when Bitcoin dips to that level in a few years we will buy back in aggressively.
The below graphic shows this well:

Buying close to the 200 day moving average when that chance arrives keeps losses from happening.  Bitcoin has been above that territory since late March which is when we started the DCA process.  We could have started a week earlier.  Timing and patience are critical.  Reading and understanding the stock to flow model and the history of monetary policy is also helpful.  It is a process of education and learning.  Neutral ATM helps our clients get there.  Tomorrow we will review the stock to flow model and apply that to 2021.  Start today, DCA into Bitcoin.  Your future self will thank you!  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.