2017 All Over Again
The all-time Bitcoin chart is forming an immense cup and handle pattern, and nobody is talking about it. That happens because it is easy to get caught in short-term storms rather than focus on what matters, which is the macro price action and the long-term pattern formations.
It's amazing how far we've come with the crypto markets. Looking at the Bitcoin chart, one can barely see the pumps and dumps that occurred throughout the year 2017. That was a good year for crypto, an insane cycle that is about to repeat itself this year, only a bit more accelerated and aggressive.
Anyone who was around during 2017 knows that in September of that year, China decided to ban Bitcoin in mainland China. Over the course of a day, the price of BTC tanked from $4,500 to $2,950. This is why I was almost close to buying a whole coin. I missed out because of some bank transfer issues.
Not long before that happened, I was reading on a forum a forecast of Bitcoin's price by some German dude who was saying at that time that BTC was about to tank to $2,950 (the exact level it reached after the bad news came out) and then aggressively pump to $8,000.
It happened precisely as that guy said, but instead of peaking at $8,000, BTC went all the way up to $20,000. Those times were insane, and in my opinion, we have not experienced something similar since then. 2020-2021 was a lackluster bull market, in my opinion.
Now we have the announcements of Bitcoin and Ethereum spot ETFs to be approved in Hong Kong as of Monday, and very few realize the magnitude of such an event for Bitcoin's price. China has almost zero exposure to Bitcoin due to the ban, so if something like that comes into play, we will witness something similar to the rebound of September 2017 after the China ban dump.
Yesterday, we had a severe dump all across the markets (except gold), fueled by a supposed attack on Israel coming from Iran. The news is somehow fabricated in my opinion, as it looks like America needed that to cool off the markets for a bit. I did not fall for the FUD. On the contrary, I redistributed my portfolio and now have more DOGE than I had last month.
What can I say, I am stacking DOGE, not sats...
Anyway, BTC has been trading almost sideways for about a month or so, and in my opinion, after the current dip, once the official news coming from Hong Kong regarding the Bitcoin and spot ETFs approval goes live, BTC will go parabolic, just as it did back in September 2017, dragging the whole market with it.
As Larry Fink said a few months ago, crypto is becoming a flight to safety, and there would not be a better moment than this one for the BTC and ETH spot ETFs to be approved in Hong Kong. BTC rocketed from $2,950 to $20,000 in about three months. Now it will probably reach $150,000 and above by the end of the year.
Same stuff every cycle, it's just the narratives that fuel the FUD and FOMO that differ from one another. Stay unfazed, my friends, and don't forget to take profits this bull market. The wild ride for altcoins hasn't even started yet.
Thanks for your attention,
Adrian