Bitcoin; the clock keeps ticking!

Proshares is starting a Short Bitcoin ETF.  Yet, the SEC still has not approved Caitlin Long’s Avanti Bank which is now sueing the Federal Reserve, due to the 19 month delay in getting it’s bank charter approved.  In addition, the SEC has never approved a Spot Bitcoin ETF and Grayscale Bitcoin Trust is sueing the SEC over that lack of approval.  Obviously, the Fed does not want to approve ways for Bitcoin to flourish, since the private central banks control the global monetary system!  Here is the tweet about Proshares Short Bitcoin ETF, click here to view on twitter.

 

Then, look at the reverse repo price.  The rate was raised 155 bps recently.  See the chart below:

 

 

Here is an explanation of what reverse repo transactions actually do.  So far, over $2 trillion has been drained from the banking system reserves through reverse repos:

 

 

This is a stealth move by the Fed to create a quantitative tightening environment for the monetary system.  Pay attention to China as well.  Rural banks in China are seeing bank accounts being frozen and citizens are unable to access there own money!  Fears are spreading this contagion will spread to Shangia.  The peoples bank of China is investigating this Bank Reserve shortfall in rural China to calm fears.  President Xi is attempting to coerce banks to lend to developers in Shangia, who are already insolvent.  This does not bode well for the US banking system either.  We are watching for more prevelant bank runs in China.  Then, what does that mean for US and European banks?  

We know the controlled demolition of the banking system has begun.  We know the Fed has at least mentioned starting up CBDC (central bank digital currency).  When this does begin we believe the Fed will attempt to use this totalitarian system of behavioral economics, to control the financial behavior of CBDC users.  They will also limit how long a CBDC can be held before it must be spent.  In other words, they will dis-incentivise savings.  Bitcoin again is the life boat.  Bitcoin works like a clock.  Each block goes onto the block chain every 10 minutes, and the first 1 million coins ever mined have never been spent.  They act as the backing for Bitcoin.  Once this backing for Bitcoin was never touched, when Satoshi Nakamoto walked away from mining Bitcoin in 2010.  This allowed Bitcoin to breathe on it’s own.  The creators of Bitcoin walked away 12 years ago.  It has been mining blocks ever since without them!  Think about that.  Bitcoin has no owners, has no marketing team.  Every 10 minutes another block is mined on the blockchain, like a clock.  Demand has nothing to do with supply.  Every 210,000 blocks the reward, paid in Bitcoin, to miners, is cut in half.  Every 210,000 blocks a supply shock is kicked off!  2022 is looking bad.  The June monthly candle is about to close below the 12 year trend line for the first time ever.  Bitcoin is struggling due to the strength of the dollar on the DXY chart.  However, the good news is.  The buying opportunities coming up soon, will be historic.  In the chart below, we see Bitcoin is below the red line, the 200 day moving average.  That is the top of the chart.  The middle of the chart we see the RSI is below 40.  However, the bottom of the chart shows stochastic RSI.  That needs to be below 20 and the red line below that level as well.  Once the red line at the bottom of this chart (stochastic RSI) goes below 20.  That would mark one of the greatest buy opportunities in Bitcoin history.  It has happened three times before since 2009.  2022 may end up simply being the year to accumulate cheap Bitcoin for the future.  See the chart below to understand how we match up the price below the 200 day moving average, RSI, and stochastic RSI to find the bottom price structure:

 

 

Thanks to Steve Courtney for this chart above.  He also shows us in these next two charts how Bitcoin is about to close below the 12 year trend line, on a monthly candle.  

 

 

The next chart is a close up of the June 2022 candle and the 12 year trendline:
 

In 2015, and 2020, Bitcoin wicked below that trend line.  Now it is about to close the June monthly candle below the trendline.  It could take a year to break above this trendline!  A year! By end of 2022, that would be $47,500 Bitcoin!  Not what you want to hear.  However, choosing between CBDC and Bitcoin is a no brainer if you have studied what CBDC attempts to do.  The next halving for Bitcoin, is first quarter 2024.  We need more patience.  Bitcoin will break through this trend line as it gets closer to the halving date.  That is way far out in the future.  So for now, focus on accumulation at historic pricing.  Neutral ATM bought below $20K over the weekend and now we will wait for the next leg down.  We expect another leg down.  This is a bear market.  Know that the trend will reverse.  The Fed will pivot.  The DXY (US Dollar index) will drop again.  This is not financial advise and we are not financial advisors.  Remain patient and calm.  All investments are down this year.  It will get better in the fall, but a full recovery will take A LOT of time!  We have to accept where we are.  Bear markets create the greatest LONG TERM accumulation opportunities.  Otherwise, your holding CBDC’s being forced to spend, and not save them by your government.  This is not a hard choice!

 

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.