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Bull Season Upon Us!

Updated: Jan 18, 2020

Blockchain Blitz is not a registered financial adviser and thus does not provide financial advice. The opinions expressed by Blockchain Blitz should not be considered investment advice. You should consult your own tax, legal and/or financial adviser before engaging in any cryptocurrency transaction. Blockchain Blitz is not responsible for any gains or losses resulting from opinions expressed herein. Always do your own research.

This is a follow-up to the two previous blogs "Bitcoin Potential Life Changing Opportunity Approaching." The idea behind those pieces was that the price of Bitcoin would be manipulated up to approximately $6k in a fake bull run and then a subsequent dump off would occur.

On May 11, the price of Bitcoin blew through the $6k level - the level of which any technical analyst will tell you should have been the biggest resistance level Bitcoin price has ever faced. Instead, it faced no resistance there and drove all the way to ~$8300 before facing a dump off of 24%. That dump was quickly bought back up, however.

This price action is not abnormal for a manipulated market....nor is it abnormal in the lifespan of Bitcoin. That said, the fact that price completely disregarded the $6k level was eye-opening and a good sign for a potential bull market to return. However, these are also how bull traps are set.

To believe this bull was indeed real, in addition to the $6k level being broken and held above, we needed to see the total market capital of cryptocurrency break and hold the $255B level. Three days ago (May 26) it did just that, hitting ~$268B and since settling in at $256B. This was the last piece to invalidate the idea that the elites would send Bitcoin to new lows.

Our sense is that there is likely a new influx of speculative fiat coming into the market - most likely the Chinese fleeing or hedging against potential Yuan devaluation due to the US trade war and the fact that their government is strictly forbidding Bitcoin investing (people want what they can't have). Or it could be a host of other reasons and there is no sense trying to guess. The reality is, the market has turned bullish and we are, at this point, convinced that it is more likely real than not and are looking for opportunities to re-enter our favorite Alt coin projects with fiat we've had sitting on the sidelines since summer 2018.

Nothing is ever certain with cryptocurrency but at this point we like the odds of the bull market continuing, barring any global catastrophic or negative economic events.

Stay safe!

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