With Bitcoin approaching $20,000, I said a major reversal of it, and the whole Cryptocurrency play, was imminent.
There were several reasons for that assessment, including the fact the rise had gone super parabolic, mirrored the “dot-com” craze, and the fact that “walking dead’ companies were becoming Cryptocurrency plays was a classic late-stage signal.
But my #1 concern for their future was:
I stated that major governments around the world have come to realize that Cryptocurrencies had now risen to become a formable challenge to their control of fiat monetary systems that had gone mad. I suggested it won’t be long before they will start to enact, or at least recommend, policies to curb or attempt to destroy Cryptocurrencies appeal.
I suggested we could see at least a 50% to 90% retracement of gains in the Cryptocurrency plays, with many failing and/or merging.
But like the internet craze, out of the ashes of this expected meltdown, survivors would then more than prosper going forward.
There’s no doubt “Bitcoin” remains the bellwether play in the group. It’s now at a critical technical and psychological support area around $10,000. A serious break below will IMHO, caused much of the money flows to that arena to slow down considerably (if not cease). A side effect of this possibility is if the general stock market has topped out, or still has further to go in its “FOMO” run-up. In my book, a break below is when, not if (and sooner than most are now prepared for). Interesting days ahead.