What is this…..a correction for ant!? Yes Bitcoin finally corrected yesterday after straight up parabolic movements since the middle of the December. Is Bitcoin going to HODL above 30k and continue the run?? Well strap in, take notes, and listen hard. We’re going to try to answer that question & more, because it’s time for Chico Crypto! It’s hard to imagine, only 2 weeks ago, I still had long hair and was cutting on the live stream when BTC officially cracked 20k.
And today,even with the correction, we have pushed back above 30k but the recent run peak was about 35k…remember, I’m growing out this beard until 100k, so we got to 35 percent of the way there into just the 1st week of 2021. If BTC continues at this rate, I’ll be shaving my bear by mid year!!!! But, if we look at the past, and the run which happened in 2017…. Bitcoin may be due for a bigger correction. So back in early December 2016 to early January, Bitcoin had a very very similar pump, percentage wise. As we can see, the price went from about 750 buck to getting near 1200, its previous all time high set in the last run 2013/2014.
This was a percentage increase of about 60 percent. This run, from the same exact date December 8th to January 4th, pumped from about 19200 to an officially daily close of about 33 thousand. A percentage increase of about 71 percent. Why so similar!?? Now as we can see back in january 2017, after January 4th a correction came…kind of like what we are experiencing. Now let’s expand it out about a week, the 2017 chart….Bitcoin dipped to just above where it started, about 780 bucks….
If things stay the same, this means we have a bigger correction coming, that could last up to a week & take Bitcoin down to the low 20ks. So do I think this is going to happen!? Eventually yes as you have to understand who is running the leverage game nowadays. It used to be BitMEX, but since they got hit & hit hard by regulators, Binance is now the #1… And yesterday, from that drop, they racked up over 190 million dollars notional value in long liquidations in just 10 minuets. A sweet payday, and it will be even more… if more rugs are pulled? Why. Well look at the chart, from the 14th to yesterday, there is so much opportunity to liquidate those who have gone LONG, At 30k, 26k, shoot even at 22k. But it may not happen, as there may be more money to be made with shorts…yesterday through today, the big exchanges and whales are seeing how this correction plays out…as going to bybt.com and it’s liquidations data, we can see over 24 hours yesterday, there was still over 110 million in short liquidations.
Just on that tiny little rebound back above 30k.. So what do I think, if I had to guess?? What’s going to happen in the next week? Well the opportunity to pull of a final #reckoning, before turning full on bullish for the year is closing in…and if you pull out the liquidations charts, you can see, there isn’t billion of dollars worth going short across leverage exchange like there is going long…or we would see a red bar being just as big as those green bars, on the way up to 30k. You don’t, because people aren’t crazy shorting Bitcoin at the beginning of bullish cycles….. I mean just look at the stock market!? There is profit taking happening in every asset after an insane year….this kind of pump and then early January cooloff happens every year with stonks and then it usually…. drifts into BTC, we know it happened in December 2016, to Janauary 2017, it then happened December 2017 to Janauary 2018, also in December 2018 to January 2019, the only year it didn’t do it…December 2019 to January 2020, last year….3 out of the 4 years, we have dove in early January…
So that means yes, I do think another correction is coming, the bounce yesterday, was just that…a dead cat bounce, to sucker in a few more longers before we crash again, it could of happened already…it could still come, I might be completely wrong…that’s why I don’t leverage trade.. But Damn Chico Why you so bearish!? Well I’m not…. I hodl, because if things are to be the same, it doesn’t matter if a big correction comes like 2017…expanding out the chart after the crash, in January 2017, bitcoin rebounded…and then…many of you remember you were apart of this run, bitcoin went parabolic throughout 2017, on the way to the peak at the end of the year, and the fall back earlier in the year, you can barely see it on the chart. Soooo, opportunities are abundant in the crypto markets. Of course, like my video showed yesterday, Ethereum & it’s DeFi ecosystem, is the most used, and nothing else compass…thus its a focus of mine but there is an issue, aka scaling aka gas fees, aka making most dapps unusable.
Thus, those who help solve the big issue of the most used chain, might just be able to swallow up some of these 2021 bullish gains. And if you didn’t know, the layer 2 wars are about to heat up, and heat up big time. There is an opportunity right now, with Synthetix, as yesterday the block dropped that they plan to go live on a preliminary mainnet, on January 15th… In a short 10 days, and I think the rollout of it might build much hype.
Why? January 1st, co-founder and CEO of synthetic Kain Warwick tweeted that he would be going on a 2 week break. Aka coming right back, before the prelim mainnet with optimism. And me thinks, there is going to be some sort of Coinbase involvement with it, the mainnet, as their Coinbase wallet, supported the testnet, of which Synthetix was a main feature of, and going into the blocks article they said “On application, the coinbase wallet, already accessible via the tesnet is Synthetix’s Mintr staking platform. If they are integrated with the test, I wouldn’t doubt they are integrating with the main… So, that will be big for Synthetix if the Coinbase wallet supports the wallet…but like I have been saying. This Optimistic mainnet, isn’t a full mainnet…. Going back to the blocks article on the mainnet drop they also said “Since the mainnet release is preliminary, Optimism cautioned that it could result in outages and bugs. Therefore, the project team will hold upgrade keys for at least the first six months to ensure user funds’ safety. “Until we relinquish those keys, please do not consider this the full and final system,” So it will be fully centralized out the gate, and similar to how OmiseGO went out with their mainnet.
Remember the ties between the twoo…now Just go back to June of 2020 OmiseGo going live with their mainnet blog post. They said this “What does this mean for OMG token hodlers? Well, we can’t quite stake yet — in this release, the network remains centralized under OmiseGo’s control using the Proof-of-Authority consensus algorithm, meaning they have not yet relinquished sole control of the network. This is to keep an eye on the health and stability of the network as it is being used in the real world, before moving onto the next phase of their implementation: decentralizing the network by moving to a Proof-of-Stake model, where OMG token hodlers can stake their tokens on the network and reap rewards for validating transactions” They said they would relinquish control, they said it would be decentralized…but that did not happen…and it’s the next year…I hope rollups isn’t another omisego… But this means opportunity with other layer 2’s, and let me tell you, there is a lot….xdai, one of my favorites, as it’s ready right now, and can scale…right now.
And xdai, just recently set a new all time high for daily transactions, over 150k yesterday. Compared with other live Layer 2’s, xdai is smashing….the only live one we can compare to is Matic, and they are only around 40k… And matic has 3x the marketcap of xdai… So to get how “BIG” this is, just look at other chains worth billions. Cardano, is only putting up just over 12k, polkadot is putting up under 10k, xdai is the 3rd most active chain with REAL transactions, there are many using “FAKE” transactions. The reality of it is this… Ethereum is number 1 real transactions, Bitcoin is number 2 real transactions, and xdai is number 3 real transactions… So 2 weeks from now, we are going to learn, just how big optimism will be. Some people think, it’s the death of things like xdai. In my opinion, it’s only the beginning. Cheers I’ll see you next time!.
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