Bullish Continuation or another leg down to 34,000?
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Charles Capriole has long produced valuable indicators and this is one I certainly like to use, especially to pick up large market cycle bottoms. That said, the Bitcoin Production indicator has been particularly valuable in recent bull market as well as it picked correctly the March and Sep 2020 bottom as well as the big sell off in May 2021 to 30,000$.
I am not sure we will see a dip to 34,000$, but I am a strong believer we are seeing the longest bullish consolidation in BTC's history (30,000-60,000$ range). Market tops form fast, literally we sell off 50% in 3-10 days. On the contrary, we've been trading in this range for over an year! That is crazy for Bitcoin terms. However, if we are to push the price higher, we need a lot of buy power and it makes sense for this cycle to develop slower than the previous ones. It takes a lot more ammo, time and adoption to push the price from 3,300$ to 250,000-300,000$+ compared to the previous cycles.
If one checks the stable coins counts - currently sitting at 170 billion vs 32 billion last year when the price was the same. This means only thing - sooner or later (rather sooner), fireworks are happening and we should get ready for another quick explosion to the upside.
I am not sure we will see a dip to 34,000$, but I am a strong believer we are seeing the longest bullish consolidation in BTC's history (30,000-60,000$ range). Market tops form fast, literally we sell off 50% in 3-10 days. On the contrary, we've been trading in this range for over an year! That is crazy for Bitcoin terms. However, if we are to push the price higher, we need a lot of buy power and it makes sense for this cycle to develop slower than the previous ones. It takes a lot more ammo, time and adoption to push the price from 3,300$ to 250,000-300,000$+ compared to the previous cycles.
If one checks the stable coins counts - currently sitting at 170 billion vs 32 billion last year when the price was the same. This means only thing - sooner or later (rather sooner), fireworks are happening and we should get ready for another quick explosion to the upside.
Note
Indeed, as suggested - we did get to the zone and according to previous data - this is a strong buy signal. I believe we are seeing the most pain w/o breaking the bullish market structure. This is good.
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