Bitcoin, XRP and altcoins pull back significantly with over 1 billion in liquidations taking place. What’s going to happen next? And a representative in Russia is calling for a bitcoin strategic reserve. This is game theory playing out. And the Blockchain association sends Gary Genser a letter telling him to cease and desist all crypto enforcement actions even as he’s heading out of office. Hey everybody. Welcome into the cryptomannia articles if you like the articles then please let us know.
Bitcoin & Altcoins analysis
Folks, I think it’s no secret. Everybody should know what’s happening right now. We are seeing a big pullback. Bitcoin below $97,000. ETH below $3,700. XRP taking a beating right now it’s at $212. It is down about 22% over the past seven days. Solana at $212. BNB down as well at $680. Cardano taking a beating as well, down below a dollar. But why are these specific coins, XRP, Cardano and even HBAR down significantly? It’s because they pumped harder than the other tokens in recent weeks. Right? Remember we were looking at XRP running HBAR up 300, 400 and so forth. They, they were capturing a lot of liquidity, so their pullback is going to be more significant. But let’s zoom out in the macro. We are on track. There’s no invalidation of this market, guys, despite there being over a billion in liquidations that are happening, these things are normal. You have these normal flush outs of built up leverage. When it gets too much, it gets flushed out, we reset, we build the support levels and then we go higher. If you’ve been around the block in this crypto industry, being here from multiple bull and bear markets, you know what I’m talking about. So we use different metrics and indicators to tell us where we’re at in the timeline of the cycle. And we use Bitcoin as a measuring stick because Bitcoin leads the market. So it’s right across the board. Not financial advice, but it could be a buying opportunity to buy the dips. I Personally, am not buying bitcoin. Going to look to position myself with certain altcoins which I feel are still depreciated that haven’t broken out significantly. And I’ll look for those opportunities if we do go down further. But as I’ve been saying recently, bitcoin could go test 80k. So just be mentally prepared for that. Here are the scenarios I’m thinking about in full transparency. This short term consolidation here after the pullback and then a rip up into the end of December into early January, then a major correction because we saw that in 2020 into 2021 it doesn’ it’s going to repeat, but it could rhyme, right? Or we have our big pullback here. Bitcoin goes and tests 80k, some of the altcoins pull back significantly once again, we build support levels and then we keep going. So that’s what I’m personally thinking about. That’s my thesis once again, not emotions or feelings, but staying even keel with this and bitcoin on the monthly chart, it is forming a bit of a red candle here. And if you notice, the monthly RSI is nowhere high as it was in the previous bull market peaks. So there’s another leg up here. So these are different metrics and signals you need to look at. The total altcoin market cap is also getting rejected, which is normal because it hit that all time high that was set in 2021. So that’s usually a place of rejection and you have to keep punching at it before you break through and move up. This is how the markets work, guys, and this is why you got to pay attention to charts. We don’t move by our feelings and emotions here when it comes to investing and we have to be careful with social media and some of the things you may see and hear. You got to validate it with data because people will tweet out it’s the end of the bull market, right? And many times they’re shorting, they want you to sell, they want to put fear in the market. So you have to understand their motives, right? Are they showing you actual data and is that data correct? So that’s why I’m trying to explain to you guys, to look at the data first. Now, credible crypto highlighted that his XRP downside target, he was calling for a pullback. He said it was hit. And he says because we did this sooner rather than later after taking highs, there’s a good chance that if we make new local highs from here, we don’t need to revisit this Region any longer after any longer. So he’s essentially saying, we pumped, we’re going to pull back, hit the targets, build the support levels and then see you later. Right. We’re going to higher highs. That, that is how it is in the bull market. But you know, these pullbacks, these things are so normal, guys. They’re so healthy. When I first got into the market in 2016 and 2017 was my first bull bull run, these things scared the hell out of me. So if you’re new, I understand how you feel, but this is why I’m pointing you to charts and data. Not, hey, I guess this is going to happen, or I guess that, you know, I’m pulling out my ass or something. But let’s look at the charts and form a thesis. Let’s look at the data and form a thesis. Right? So, guys, healthy and a lot of leverage and overheated funding getting flushed out. Good, good sign. So let’s take a look at some indicators that tell us where we’re at in a cycle. The bitcoin pie cycle top indicator has not flashed. This is something that has flashed in the past, showing us where we’re at in a bull market. If we are near the top. The CBBI index, this is the Colin Talks crypto Bitcoin index. It’s a pretty good metric. And right now bitcoin is nowhere near in the 90s or near a hundred where it usually indicates the top. It’s right now around 80. So we got room to go. Bitcoin yearly candles, you know, there’s usually three years of green candles then followed by a red candle. Right. It follows the election cycle. And then you have the bitcoin halving that’s built into this. So you can see we’re nearing the end of 2024. And in 2025, we do have room to go higher based on historical patterns. Also, we continue to see bitcoin whales and sharks are buying wallets of 10 +bitcoin continue to be bought up. So once this starts dipping, that’s where I’m going to say, okay, we have to pay attention. The party’s about to end, right? They’re, they’re selling on us, they’re dumping. And bitcoin supply and exchanges continues to go down. Same thing here. If the supply starts to increase, that means whales are moving the coins back on the exchanges to dump. So this is why we use bitcoin as the measuring stick. Right. And it tells us where the market’s headed and what all coins may do. So I’m sharing the data here with you guys. And with no, no reason to panic, we’re also seeing BlackRock is continuing to buy. It’s crazy. I mean, they bought 4,100 Bitcoin today. Thomas Some. Hey, Apollo says you didn’t panic sell, right? So you look at this chart. The accumulation is crazy, guys. I mean, they’re going to pass Satoshi. And you know, as I was talking about in yesterday’s podcast, Black rock is going to financialize bitcoin. And just as they have with other commodities and movements like esg, they’re going to put the pressure on corporates and Wall street and so forth. Everybody’s going to have to bend the knee here and adopt some sort of strategy around bitcoin because the writings on the wall, they know what’s coming, especially with the strategic reserve and so forth.
China money printing
And here, guys, you know what’s bullish? We usually talk about the macro and global liquidity. China today said they’re going to ease monetary policy to moderately loose for the first time since 2010. Oh my gosh, guys, I laugh because I know this what’s coming. I’ve been telling you guys nonstop. It’s a process. It doesn’t happen overnight. They all will go back to quantitative easing. They will print and print and print and the global liquidity will rise. And guess what, the asset prices will rise with it because they’re, they’re debasing the denominator, the fiat currency rhyme. And this is so important. This is why I share the macro, you guys, because it’s what drives market and crypto is a part of it and stock market and much more. So I’ve been telling you guys for the past couple of years, we’re in a macro bull market for real estate, crypto stocks, precious metals as well. We saw gold had a major rally this year. So the rotational liquidity is happening throughout these different asset classes. Now, nothing moves like crypto. That’s why we’re here in crypto, because it’s still a young market and the upside is incredible because it’s a truly hard asset like bitcoin is capped, many of these coins are capped and it’s distributed globally. So you have liquidity and funds coming in from everywhere, whether you’re a millionaire billionaire or the average Joe putting a hundred bucks in, it’s all coming into the same network that’s verifiable hard cap. So you have that supply and demand economics playing out here. So that’s why these prices go nuts. So this is incredible stuff, guys. And The US we’ll go back to quantitative easing. As Paul Tudor Jones said in an interview just the other day, we’re going to, they’re going to have to print their way out of this inflation situation. So that is bullish for asset prices. Now, guys, quick word from our sponsor. And that is Bitgo. Bitgo is one of the top tier crypto custodians out there, but they recently launched a retail trading platform that provides staking and safety with wallet services and so forth. So Bitgo has been working with many big companies in the industry like Bitstamp, Exchange, SUI, the token project Pantera Capital is Dan Morehead, 21 shares, 21 shares issues, Bitcoin and Ethereum ETFs. So if you’d like to learn more About BitGo, visit bitgo.com .
Russia Bitcoin Reserve
Now, guys, I mentioned earlier that Russia wants to launch a strategic bitcoin reserve. We got news here. The Russian State Duma deputy, Anton Kachev. I’m saying that. Right. Proposes the creation of a bitcoin strategic reserve in Russia. Game theory, folks. The US kicked it off and you’re going to see superpowers, global superpowers, are going to follow suit. Watch what China does. I wrote a newsletter a couple months back. I think China is going to open up the Hong Kong Bitcoin and Ethereum ETFs to mainland China because in the ETF wrapper, they can control the currency, they can view everything that’s happening. And I think they’re using Hong Kong as a sandbox and don’t be surprised if they open up all their crypto trading and so forth. But I think the ETFs makes sense. You know, they, they claim crypto trading is banned in China, but we know people still do it with VPNs. But pushing people to the ETFs, that’s a, you know, that would be a smart move for them as a communist government. Right? And I think that’s going to open up a ton of more liquidity and capital for the etf. So that’s my prediction. I think it may happen come Q1 2025. But I could be wrong. That’s just my prediction. Check this news out.
Gary Gensler enforcement actions before leaving
It’s the final news item. Kristen Smith of the Blockchain association tweeted out the following. Today, time’s up on Genser’s crusade against crypto at the sec, or at least it should be. We sent a letter today to Chair Genser, making one thing abundantly clear. The Commission should pause on any new crypto enforcement efforts until the transition. So a lot of people have been concerned that Genser may, you know, pull a revenge move and try to, you know, throw a bunch of lawsuits or whatever it is before he runs out the door. We saw Jay Clayton do that with Ripple, of course. So you can’t put anything past this guy. He’s a scumbag regulator. So I’m glad the Blockchain association is putting a spotlight on this. Right? Call it getting ahead of it just in case Gensler does something. It wouldn’t surprise me if he does something, guys. So just be prepared. And with the market pulling back, you know, this, this would be like a perfect time for Genser to do it. We’ve seen him time things with the market. He, he times it to drive the markets down, right? To put fear in the market and much more. So I’m glad the Blockchain association is doing this. So Kristen says with the incoming admins view on crypto clear and new SEC leadership on the horizon, any new enforcement actions before the transition will appear partisan and retaliatory. The commission risks its integrity and waste taxpayer resources by continuing this approach. So she goes on. I’m not going to read everything, but, you know, it was good that they’re highlighting this. So getting ahead of in case Genser does decide to do something crazy here, folks. That’s the news. Let me know what you think. I hope none of you are panicking or worrying with this pullback. It is so healthy. Now if there’s we get to a point where there’s some sort of invalidation of the bull market, I’ll let you know. Like, hey, guys, close shop, run for the hills, right? This thing, something’s different. But right now it’s business as usual, guys. It’s just, I’m not even phased by these things anymore because I’ve been here so long. I think I was saying yesterday, you go through the meat grinder, your skin gets thicker and you know what’s happening. You look at data in the charts and you’re like, whatever. Who cares about the headlines? Who cares what people are tweeting on social media or whatever. Show me the data and I’ll tell you what’s what’s happening. Right, guys? A great way you can support me is by reading and visiting here. It’s 100% free, includes crypto insights and knowledge. Also, grab a copy of my book Rethinking Crypto. Buy a copy for your friends and family. Give it as a gift this holiday. Help them to learn about crypto. What is this technology? What’s its past, present and future? And if you bought a copy already, please leave a rating and review. That will really help me out. Thank you guys. I appreciate you all. And I’ll talk to you all later.
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