How Likely 100,000 Bitcoin BTC By Years End?
Looking at BTC on the daily we are still very bullish, the one thing I want you to realize is I do believe we’re going to stay in this consolidation zone for at least a couple more days if not a week or two. You can see we’re below the exponential moving average this light blue line which is not necessarily the best sign for momentum to the upside. I just don’t believe we’re going to see this showing bearish signs anytime soon I think we will continue to consolidate in this range allowing some of these altcoins to start heading up. One thing you guys have to realize is every single time we see a Bitcoin cycle we’re also going to see an altcoin cycle now.
I’m not expecting as much price action with altcoins as we did in 2017 because we have a smarter investor market but that doesn’t mean there’s still going to be opportunities in the altcoin market. You can see with the MACD right now this is a very good sign to see where buyer and seller pressure is and we’re still seeing a little bit more seller pressure and it looks like we’re starting to recharge right now with our moving average convergence divergence here the MACD which is very good for Bitcoin. We definitely need to see some sort of consolidation for us to then recharge and then see more and more buyer and bullish action and that’s where we’re going to start to see more of these institutional volume spikes occur. I want to do a little bit of an institutional volume analysis here so you guys can realize that when we do see a $100,000 Bitcoin it’s going to be because we see institutions pouring liquidity into this market and you can see how the institutions like to get into this market by these volume spikes here. You can see their dollar cost averaging into this market and it looks like we haven’t necessarily seen much sell volume from institutions because there’s just not that much high sell volume bars here which shows me that institutions right now and as we’ve talked about over the last two years on this channel they are seeing more and more interest in this market. Cambridge Analytics which supplies over 300 billion dollars of managed assets reference points for investments for the first time ever in March announced to all of their institutions they recommend a 30-point investment in blockchain and cryptocurrency which has never happened before. Therefore I believe we’re going to start to see more and more of these institutional volume spikes along the way allowing Bitcoin to continue to see upside.
One chart that also confirms this is if we look at the total cryptocurrency market cap chart here on the daily you can see we have some very strong support here at 280 billion dollar market cap range and that’s a very good area for support for the overall cryptocurrency market as a whole. The other aspect of this chart that’s very important is just noticing how much more volume we have during this bull trend than we did in 2017 which is showing me that we’re seeing a lot stronger of a bull market than we did in 2017 which 100% leads me to assume the cryptocurrency market cap as a whole will eventually reach a 1 trillion dollar market cap. I believe that’s when we’re going to start to see a huge shift in dynamics with the world economy.
If we look at some headlines you can see countries like Venezuela are now going fully crypto. You can see Maduro orders Venezuela’s biggest bank to accept crypto petrol nationwide. Why is this important, well I believe this is the future of currencies if we look at Gold’s chart right now, Gold is still at these all-time highs since 2014 and we are not necessarily seeing any bearish action here. As a matter of fact we now have this very strong support here for gold at 1375 and now just like Bitcoin we may see a little consolidation area here allowing more of these currencies to catch up but for the most part I believe we’re going to start to see currencies head to lows while assets and storage of value assets like Gold and Bitcoin are heading to new highs. I think if you want to have a good reference point of where Bitcoin is heading you can also watch Gold now and we’re seeing a lot of correlations with Gold and Bitcoin as Bitcoin is the quote-unquote digital version of gold so it would make complete sense what’s occurring.
Hopefully that analysis makes a little bit of sense so overall I definitely expect a 1 trillion dollar market cap for the overall cryptocurrency market and that will then lead Bitcoin to hit those all-time highs and potentially see a $100,000 BTC. I think another big aspect to watch here is Bitcoin dominance because understand not only did we hit that 62 % dominance mark and we started to pull back a little but we’re now back at that 63% dominance range and we are testing these highs. In my opinion the reason we’ll see the $100,000 Bitcoin is the initiation of this bull market was as soon as we started to see Bitcoin dominance starting to rise and the initiation of the bear market in 2017 as you can see here from December of 2017 was when bitcoins dominance was starting to lower. I think just more and more investors are becoming smarter in this market realizing Bitcoin is the benchmark against all of these Altcoins. All these altcoins really are being valued on Satoshi’s more than they are on US dollars or any other currency. Knowing all of the other aspects of the world economy that are pretty unstable right now people are more likely to bet on these altcoins based on their Satoshi value than they are on any sort of currency value. That’s the reason we’ll see Bitcoin head to that 80% dominance range we’re it pretty much stayed for the majority of its existence. I think that’s the biggest difference we’re seeing here in this market and why there’s that huge potential for us to see that $100,000 Bitcoin.
So understanding the total cryptocurrency market cap has strong support at 280 billion dollars we’re seeing strong volume we’re expecting that trillion dollar market cap which isn’t out of this world. Forex is a 7 trillion dollar market traditional markets are over 50 trillion dollars it would just make sense for the cryptocurrency market to be at 1 trillion very soon. We also have the confirmation with Bitcoin dominance and then the final confirmation and the biggest opportunity in my opinion is going to be the swings we see here with the cycles because as you can see when looking at the US dollar value right now Bitcoin is in its down cycle and this is what we’ve expected .
Not only are we seeing USD value drop for these altcoins when Bitcoin sees downside but we then see the cycle where the Bitcoin value starts to rise and then you’re able to then accumulate more satoshis which eventually turn into more US dollars especially if we expect Bitcoin to continue the price action that we’re seeing right now. The overall confirmation about all of this is the fact you can see we’re maintaining these high transactions per day volume and we didn’t do that in 2017 when Bitcoin saw $20,000 but we’re doing that now so those are the strongest fundamentals in my opinion right now that will lead us to assume the $100,000 Bitcoin is extremely likely. It’s coming to a very close time frame in my opinion as we start to see Gold and some of these shifts in the world economy like Venezuela starting to really hone in and say hey we want all of our citizens using the Venezuelan petrol and so I think that’s a very big deal.
Moving onto our next topic and to finalize this analysis there’s two scenarios here that I’m looking at. The first scenario is that we continue to consolidate around this level of $10700 — $12300. This will also allow us to on the daily chart to see Bitcoin in that 50-day moving average to head towards that consolidation zone or at least in that accumulation zone to give us that strong support for further bullish action. We will continue to see upside for Bitcoin further after this consolidation period occurs allowing some of these Altcoins to start to pull back because when you look at altcoins you’re seeing the complete opposite if we pull up Ethereum to Bitcoin.
For example, looking at the daily MACD we already saw the sellers come in with that pressure and so now it’s like we’ve already charged up to see buyers come in and you can see MACD right here that fast length is starting to bounce on that slow length. Eventually what we’re going to see like you saw here is that crossover and once that crossover occurs that’s when the buyers come in and that’s very likely here soon.
For Ethereum we’re seeing this across the board for most altcoins the reason I don’t want to do too many Altcoin price predictions right now is because looking at Ethereum Satoshi chart right now it’s pretty much what we’re seeing with the majority of altcoins. Looking at the higher time frames on the weekly and daily we are in very very good risk to reward ratio for great trade opportunities here. You can see the risk to reward on a weekly chart which is a very strong chart and its extremely good here, you can see very low risk knowing that we have that strong support at that 2.3 million Satoshis range. We have all this potential to the upside but if we were to be a little bit more realistic with this bull market I would say the upside we’d have right now is that 50% upside vs 10% downside right now and then of course there is an opportunity and potential for us to head to these higher levels. I just don’t think that will occur for all these altcoins like I said I feel like this Altcoin cycle will occur but it’s not going to be as strong as the cycle that we saw in 2017 because investors are a lot smarter and a lot of these coins don’t have the same intrinsic value in use case that they did in 2017 like Ethereum.
In 2017 it was being used to raise billions of dollars in ICOS right now we’re not seeing that at all we’re seeing IEOS and ICOS have become outdated. We’re seeing it also test this EMA you can see this exponential moving average we’re starting to test it. Especially on the daily chart where that EMA is extremely powerful as an indicator you can see that light blue the EMA here we’re testing it and we’re trying to go and break bullish above it. I believe we will see this cycle here very soon for these altcoins so its extremely exciting. The other aspect of this is you can see we’ve got positive divergence here with the RSI on ETH to BTC which like I said it’s pretty much mimicking the majority of altcoins in this market. You can see we had this double bottom with the RSI on the daily now we formed this higher high, this lower high and we are still continuing this uptrend and we actually looks like we just broke above 40 which is extremely bullish because anywhere between 40 and 60 and the RSI is bullish. For us to start heading towards these overbought levels beyond 60 and then eventually above 70 which will then be the indicator for us to rebalance and reposition our portfolio and take profits. Right now we’re seeing amazing risk to reward ratios for these altcoins.
Let’s now move onto some headlines here and the first headline which I’m extremely excited about is Bitcoin is a nightmare for banks laundering trillions of dollars every year. I want to talk about why this is important because banks help launder over a trillion dollars every year that’s over ten times more money than the entire Bitcoin network is worth. Why are they so critical of Bitcoin because a public ledger would mean their worst nightmare accountability and as we move forward you can see in this article it says China and Europe are pumping money into their systems in order to compete with the U.S. The U.S. should compete by doing the exact same which would effectively devalue the dollar and they’re referring to Donald Trump and what’s occurring right now with the economic war with China. This is showing me alongside this Venezuelan article about the president going to the main bank and saying you have to accept petrol nationwide. I believe we’re starting to see currencies are coming to a low while these storage of value assets are coming to a high.
So understand this when we look at Gold we’re also seeing these highs which typically occurs in the economy when there is uncertainty with traditional markets and traditional investments. Investors and Institutions will then hedge their money in storage of value assets like gold. For the first time ever though Bitcoin is now present in the market for investors to put liquidity in and that’s why I believe we are seeing all this exponential amounts of volume coming into the total cryptocurrency market as well as bitcoins parabolic increase in price versus altcoins which aren’t necessarily seeing the type of parabolic levels that we are with Bitcoin. You can see this insane amount of volume here when looking at this total cryptocurrency market cap chart.
Question from Russell: “What’s the deal with XLM or all of these alts dead out here?
Response: No not all of these altcoins but I just believe Russell that we’re not going to see as much altcoin momentum as we did in 2017. If you pull up XRP LTC and as well as XLM so that’s what’s happening right now we’re seeing a different type of altcoin to Bitcoin cycle however there’s still major opportunities. So I believe we’re going to see a lot more of these opportunities right now and if you are contemplating whether or not you want to get into altcoins right now I believe it is a good time to get into Altcoins as Bitcoin sees its consolidation between that 10700 and 12000 range and now is the time to rebalance those portfolios away from Bitcoin into altcoins. Then we will continue to watch Bitcoin as we wait for that daily candle break above 13500 for us to confirm the next two targets of 16000 and then 19000.
What I’m telling you right now is that we’re seeing a lot of interest with these investors these people that have cash and they have liquidity they want to get into this market. They’re realizing the shift in the world economy right now and I hope you guys do too because we’re seeing a huge shift in dynamics especially with Trump and China and the tariff war that’s occurring right now. There is a lot of uncertainties but the one thing I’m certain about is Bitcoin and it’s proven itself for almost a decade now.6
My opinion on ETH in regards to BTC, does it work? Yes, we’ll see price action the upside? Yes, they’re releasing ETH 2.0 and that’s going to make It a better D application network but at the end of the day. It’s not raising billions of dollars in ICOS like it did in 2017 therefore it’s not good to see millions and billions of dollars of price action for no reason right and their best use case right now is crypto kitties. How many active users are in crypto kitties? I think it’s less than a hundred so not very much use case. Bitcoins a whole different topic.
I just started advising this blockchain BTC ATM company where they have Bitcoin ATMs all around the United States and expanding internationally and we’re seeing huge interest right now with just traditional ATMs looking to incorporate Bitcoin into their software for people to start enabling withdrawing deposits. We’re just seeing an interconnected economy it’s so beautiful to me you know the internet changed the world and now this is the second version and the better version of it. As Brock Pierce told me two months ago in a private gathering the Internet in its current form is unstable and built on a weak foundation that needs to be rebuilt on a blockchain. I really like that because they’re building infrastructure like the Brave browser which is seeing huge adoption if you guys use brave or have heard of Brave in addition to the decentralized model that they have in comparison to Google, Chrome, and Mozilla Firefox you know it’s 64% faster built on a blockchain and a lot safer. I think we’ll see those type of companies seeing very high upside potential for the future. What if that becomes the next Facebook right because the Brave browser for example the reason I like this is because not only do they have a cryptocurrency but they’re creating actual like products and services the industry needs and incorporating their technology into it. Solving an issue that doesn’t necessarily require the technology behind it if that makes sense so it’s like the Internet. One of my mentors told me back in 2000 nobody knew what a website was but it didn’t matter that nobody knew how the websites were built or what a website was or what a server was or what web hosting was. What mattered was what it did for people which was it allowed people to become interconnected worldwide and it’s the same thing with blockchain and I think that’s the biggest issue we have right now when it comes to crossing that gap of marketing this technology to the general population.
In order for us to see true mass adoption it’s the fact that people don’t understand the technology but when you have companies like BAT creating the brave browser for example which doesn’t necessarily showcase the technology but uses the technology that’s the type of company I want to invest in long term those are the principles of value investing. I’m just loving the fact that the founder of BAT, the CEO also was behind Mozilla Firefox Netscape some of the largest disruption technologies we experienced in the early 2000s. He’s now behind Brave as well as BAT and therefore I believe there’s huge potential for it to be the next Firefox, the next Google, Chrome and I think that would be a great thing because the Brave browser enables a lot more features.
That wraps up everything for today, once again I appreciate all of you guys tuning in and want to thank you guys for supporting TPC. Naeem Al-Obaidi, Out!