What's Next for the King of Crypto?

My screen and I have been the best of friends lately, watching the price of Bitcoin jump around. Just the other day, I almost spilled my coffee when I saw it plunge from 63,000 to 58,000 dollars in what felt like a split-second. Of course, one gets used to the unexpected happening, but such swings still get my heart racing.

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So, what's going on with Bitcoin these days?

It's sort of like we're hanging at some kind of crossroads. We're at this level of around $60,000, which, not so long ago, seemed like an impossibly high number. But in crypto land, yesterday's moon shot is today's support level.

I remember when Bitcoin first reached $20,000, back in 2017. I was at a friend's holiday party, and people were talking about it. Folks who had never been interested in the topic of finance before were suddenly crypto experts. Fast forward to today, $20,000 seems quaint.

But the higher it goes, the more nervous it makes me for a potential fall.

Traders are currently talking about whether Bitcoin can push past $64,000. It seems like there is a sort of invisible wall, and every time Bitcoin tries to push higher, it faces a knock.

If Bitcoin can't muster the strength for a punch above that resistance, then we must get ready for some chop. Some analysts see $56,000 as the next stop if things go bad. And if that doesn't hold? Well, we could be looking at $52,000.

Now, I am not a financial advisor, and for certain, I do not have any crystal ball, but at least, I've been around long enough to know sentiment can change on the turn of a dime in crypto. It feels like the mood is turning at least somewhat sour right now. You can see it in the funding rates for Bitcoin futures- they dipped into negative territory, which said in fancy language, "Traders are getting bearish."

But a secret I've learned over the years is that when everybody starts heading towards exit signs, well, that's usually a pretty good time to start searching for the entrance.

Counterintuitive, I know. Your gut says, "Follow the crowd." But in crypto, sometimes zigging when others zag pays off in spades.

I remember March 2020, when the sound of COVID-19 struck, and markets across were tumbling. Bitcoin was not an exception, at its low, it was even below $4,000. I had been scared each time I looked at my portfolio as it shrunk every passing hour. But I took a deep breath, reminded myself why I believed in crypto in the first place and bought more. It was not easy, and for a decent amount of time, it looked like a mistake.

But, we all know what happened next.

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So what am I doing? Nothing, really, basically just sitting tight.

I have my core holdings which I don't even touch if the market goes to where it wants. But I also have cash on the sidelines for deployment if we get a juicy dip. And what if Bitcoin decides to run through $64,000 en route to new all-time highs?

Well, count me in, with a stupid grin on my face and my seatbelt fastened.

Posted Using InLeo Alpha