Bitcoin is something totally unique.
You can’t apply old-school models to predict its price over any term. You simply figure out its potential before the majority of the population, buy it, and wait for the masses to join as they find out that this technology is an obvious solution to their problems.
You don’t trade world-changing technologies.
I remember back in 2010 when people used to trade Facebook stock. They used to try to time the perfect entry and perfect exit when it was well below $50. Most of the people got rekt and some of them made a little profit. This is a fool’s way.
A wise person bought Facebook in 2010 and did nothing for the next 10 years. He didn’t use any model to predict its price after 5 months or so. He simply discovered its potential before the masses and waited for them to join.
Ignore the guy showing his beautiful Bitcoin price prediction models to you because Bitcoin has a tendency to destroy all the models.
Remember last year in June when the Big Short guy - Michael Burry - was yelling “heads and shoulders” when Bitcoin was trading somewhere around $33,000.
What is head and shoulders? It’s a chart pattern used to predict the future price of something. Mostly, when this pattern forms, the trading asset or stock falls in price.
Last year, when the same pattern was forming on the Bitcoin price chart in June, Mr. Burry predicted it to go further down in price. What happened later doesn’t need any explanation.
Bitcoin ripped Burry’s face off, destroyed his model, and hit an all-time high in October. Again, you can’t use stock market tricks on something as unique as Bitcoin.
In another example, a popular Stock-to-Flow model predicted Bitcoin to hit $100,000 before the end of 2021. We all know this didn’t happen and the model was destroyed again.
Bitcoin is the best money we have ever had. You don’t trade it for an illusionary profit. You might look like a genius if you make a few bucks trading Bitcoin, but over the long term, the world will see you as a clown. Because who - in their right mind - trades the hardest money on Earth for the papers that can be just printed away?
Don’t worry about its price. As the world wakes up to the importance of Bitcoin, the price will take care of itself, and when that happens, the single worst mistake you could make is to sell this thing.
YOU NEVER SELL THE WORLD’S HARDEST MONEY (a.k.a Bitcoin) FOR THE WORLD’S SOFTEST MONEY ( fiat currencies).
FINAL THOUGHT….
Classical music is the soul’s food.