The BTC Market Anomaly
The Technical as Opposed to the Parabolic Nature of the New Highs
Dear Readers,
Happy New Year y’all! Time marches on and as we all know the lapse of time is an essential component to price development in what is a very volatile BTC market. And yet, that said, perhaps price is not quite so volatile as previously… even as it moves thousands of dollars a day [see previous article for money illusion].
This first article of the new year will focus on what has to be something of an anomaly in price action as compared to previous multi-year cycles. It will look at the relative stability of price, its movement as technical as opposed to parabolic, and tie this back into something I’ve been mentioning and predicting for quite some time now - a qualitative change involving a maturing market.
The anomaly [those with a theory of regular returns/ patterns will indeed find it an anomaly] I’m referring to here is clearly visible on the longer-term chart when focused on the points where price breaks to new highs as below.
Zoomed Out
The tale previously was one of immediate elevation in price [diminished returns is a secondary issue here], where price has exploded relatively quickly out of the gate once the previous highs were broken. This time round, nothing of the sort - first price dallied about for 6 months of consolidation before making a modest break to the upside, where once again it price looks to be consolidating. Price has not gone parabolic like previously, but is moving in a more technical or stable manner.
For the longer-term investor this has to be a positive, for the previous explosive peaks only proved to be temporary. If instead price is becoming less volatile and more sustainable then we could say BTC is in a process of price discovery… a notion often referred to be back in the early days of Bitcoin.
And so to the LGC curves which have predicted this process of price discovery/ capitalization since 2018, and have held good so far.
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