November 2nd, 2021, Crypto Chartbook — Bitcoin is climbing undeterred higher
One of the most defining characteristics of bitcoin is its perseverance despite setbacks. Whether it is the Fed, China, worldwide regulation, and many other recent threats, it seems bitcoin has a stealth factor. There are no sure bets in market play. And yet, there are probabilities, and in the case of bitcoin, its history is astounding with what might bitcoin is shrugging off bad news. In that spirit, again this year, bitcoin is climbing undeterred higher.
Bitcoin is volatile and nosedives in some of these attacks. A historical look back illustrates how bitcoin each time is climbing higher right after:
- 2009 traded for free (zero value) between enthusiasts
- 2010 worth US$0.08
- 2011 from US$1 up to US$32 back down to US$2
- 2012 from US$4.80 up to US$13.20
- 2013 from US$13.40 up to US$1,156 and down to US$760
- 2014–2016 down to US$315
- 2017 up to US$20,089
- 2018 down to US$3,122
- 2019 up to US$13,880
- 2020 up to US$34,800
- 2021 up to US$67,016
And these last three years, bitcoin has been climbing higher, undeterred.
BTC in US-Dollar, Monthly Chart, bitcoin, a true winner:
The monthly chart above illustrates bitcoin’s winning characteristics. We can see harmonious swings. Retracements are substantial, but bitcoin shows a persistent tendency to outperform previous all-time highs.
BTC in US-Dollar, Weekly Chart, explosive recent history:
The weekly chart points towards more explosive moves recently. After a breakout of a multi-year range, we can see that bitcoin has started to move substantially due to more widespread adoption. Swing behavior is getting more harmonious.
At the moment, we are in the midst of a battle between bears and bulls at a double top formation. Consequently, the following days to weeks will show who will come out ahead.
The fact that bulls cling to their winnings for this long gives price in this pat situation a slight edge for the bullish corner.
BTC in US-Dollar, Daily Chart, stepping away from the noise:
The daily chart can be pretty volatile. These smaller time frames are advised only to be traded if you are a professional. This applies particularly to struggle zones like the one we are currently in, for instance. Intraday swings can get substantial. In addition, once these battles between bears and bulls resolve, daily percentage moves can be staggering.
Luckily, one doesn’t need to fear such challenging trading environments. To clarify, step up to larger time frames and reduce trade frequency and position size. Accept the risk based on adequate position size to your individual psychology and risk appetite. Consequently, buying for the long term will become much easier. It is essential as such to be familiar with a trading object’s typical behavior and, in bitcoins case, not to forget its ability to shine after a major setback.
Bitcoin is climbing undeterred higher:
Overall, bitcoins’ technical personality makes it an easy choice for one’s wealth preservation portfolio. Especially when options for wealth preservation investments are limited! This year’s strength towards gold and silver price performance had us increase bitcoins percentage allocation within the long-term portfolio. It fulfills two valuable functions to firmly find its place under historically much longer established counterparts. Scarcity for stability, and a more considerable performance potential necessary to protect against inflation.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.