As far as Bitcoin is concerned, this week’s stellar event was the listless breaking of the $12K resistance. Of course, it came to nothing. It was a powerless break that formed an extremely weak support. That became evident from the beginning. In other words, there was no breakout.
We need more evidence. Ideally, a breakout of at least 10% is desirable. That is, break and go to $13K. Then stay there for several days. Once we’re over the 2019 high, we can start thinking about going over the all-time high. And when we hit our all-time high, that’s when it changes. Our destiny would be to double. I mean, the race for the $40K. In a matter of months or a couple of years. I don’t know. I don’t know.
Would we ever be under $10K again this year? I highly doubt it. It’s still possible, but very unlikely. With Wall Street at the top of the mountain and a new stimulus package around the corner, the balance is in our favor. How long will consolidation last? I don’t know either, but time is on our side because our floor is hardening.
Now, let’s talk about the most read kryptonews of the week.
Some investors say that the price of Bitcoin may reach USD 50,000 thanks to the purchase of gold by Warren Buffet
I’d heard some pretty far-fetched arguments. But something like this is already too much. What’s basically happening here is that they want to put an elephant in a matchbox. I mean, Bitcoin has to be like gold at all costs. It’s like the kid who wanted a horse for Christmas, but got a dog. So, he dresses up as a jockey and rides around the fields on his „horse.“ He thinks he’s the Lone Ranger, but really it’s all just ridiculous. This whole business of forcing a (forced) marriage between Bitcoin and the gold is already reaching absurd levels.
Max Keiser is like that cousin we love and admire, but every time we see him we don’t stop fighting with him, because we can’t stand the bullshit he always says. That’s exactly what happens to me with him. A few months ago he called Warren Buffett an „idiot“ for not investing in Bitcoin Loophole and now he’s saying he’s going to be primarily responsible for its rise to $50k. But it’s all gonna be in the style of the butterfly effect. I mean, the butterfly flaps a little bit around here and on the other side of the world we have a hurricane.
According to cousin Max, the gold will go up because Warren Buffett bought a Canadian mining company. And the rise in gold will push Bitcoin up by 4X. Even Cantinflas couldn’t have articulated a tangle like that. I don’t know how many principles of logic Max broke here with so many fallacies, but if I had a dollar for each one, I could surely buy all the gold in the world. So, if one day Warren Buffett decides to buy a bike instead of a Cadillac, this means that Elon Musk’s SpaceX will go up in price like never before. Only in Max’s world.
When will the financial bubble burst and how will it affect the price?
Of course we’re in a bubble. Almost everything is overpriced. The euphoria is being fed by greed and not by fundamentals. The market has been overvalued for years. That’s not new. For years, we’ve had deficit-driven growth. Before the coronavirus, the numbers were fine on paper. But the signs of exhaustion were clear. The economy has been kept alive by the monetary trickery of Papa State. The coronavirus crisis was a tidal wave and revealed us that we were actually naked. The solution? A shower of bills.
In the midst of a terrible crisis, the financial markets had already recovered from the March crash and completely erased the losses. In other words, nothing happened here. The bills are up to our necks, but deep down we all know the hard truth. We are still naked. The artifices continue and they follow the magic of our fairy godmother, the Federal Reserve.
Now, no one knows for sure when exactly the bubble will burst, but we can bet that the stimulus will not stop before the November presidential election. Of course, this doesn’t (necessarily) mean that the stimulus will stop after the election. In every term of office, the first 100 days are key, and we know well that a strong start must be made. Trump will want to continue the stimulus. And Biden, though not Wall Street’s preferred candidate, will most likely be looking for a generous package. Will Collapse