Managing Risk & Unknowns into 2021
Thinking big and thinking longterm will do more to help a business or a family survive 2020 and into 2021 than worrying about the news! Ignore noise and plan. That is what we have been doing since March! Below is a 10 year chart of Bitcoin tracking in yellow what it has done after a halving and after closing a month at the previous ATH (all time high):
Obviously, it is significant that Bitcoin can so aggressively grow once it clears an ATH in a monthly close. We truly believe Bitcoin will eclipse the 28% growth it had in October over the course of November. However, it may be the second half of November when that growth starts. Right now Bitcoin is accumulating under $14K, building strength to break through this 3 year long resistance level! It will not be easy for Bitcoin to break through $14K. Here is another chart to show us what can and probably will happen when this resistance is broken whenever it happens:
After the Bitcoin miners complete their capitulation period which we are nearing the end of. The growth curve will steepen. Look at 2017, Bitcoin grew 2,910% in that year. In 2016 it grew 241% leading up to the break out in early 2017. We are in that phase again. If Bitcoin closes out 2020 close to or at $20k and then grows 2,000% in 2021 that is $350K plus. Hard to believe it can grow that much. We actually take a conservative position and think $150K plus is the peak area. We don’t know nor will we cap in our minds how high it can go. There are metrics to look at when the bull run is nearing its top, but we are far from that now. Rest assured, we will spend weeks discussing these metrics. Neutral ATM will adhere to a laddered selling off in small percentage chunks as we near the top. 10%, 40%, 20%, and 20% or thereabouts. We will leave a little bit in Bitcoin and never sell it. Then in 2023 most likely when the bear market is here and Bitcoin hits the 200 day moving average we will buy back in aggressively as that would be the bottom. Bitcoin has never stayed below its 200 day moving average for any appreciable period of time. So, remember a laddered sell off over time, as different metrics are hit, nearing the top of the bull market will be paramount.
Yesterday, we discussed Gold and Gold Mining stocks. We have 5% in Ethereum and 3% in Fine Art through Masterworks. Neutral ATM addressed the business side of this situation in 2020 by purchasing Bitcoin ATM’s that would give us passive income paid in Bitcoin. It takes a few years to build up this type of business and it is not for everyone. But it is somewhat passive. To grow it larger is a lot of work and there is plenty of liability with it. Another great source of passive income is rent houses but that takes more up front capital. Neutral ATM knows without a doubt passive income streams and diverse investments outside the control of central banks will be key to success in this dystopian world we are living in now! 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.