(The red and green arrows are the Aurox Indicator and they recommend a buy or a sell. Red indicates where you should sell and green indicates a buy zone. Pretty simple indicator but rather effective if I do say so myself.)
Good morning again ladies and gentlemen and happy new year to each and everyone of you. I hope we all got 2020 out of our systems and we are all determined to make 2021 a horse of a different color. 2020 may not have been good for most people but most people dont hold Bitcoin... Yet. This past year we saw a low of 3800 and a high of nearly 30k. It was the perfect bullish storm and in this analysis I will sort of wrap up the previous year while looking at 2021 as well. So grab a cup of coffee and lets chat about charts.
This monthly chart is amazing. The month of December 2020 was the best month Bitcoin has ever seen. With the wick and all we went from 17600 - 29600 which for those who dont like math is 12k. Im still shaking my head in disbelief. I mean I thought the bulls probably would eclipse the ATH but not in this fashion. The bulls really put on a show to end 2020 and 2021 is off to a great start. But can it last?
I know many of us are expecting a drop. I guess you could call it post traumatic stress disorder from the 2017 pump and dump. I can tell you right now I would love to see Bitcoin keep rising but nothing is written in stone so you need to use risk management if you are going to stay long. Walk that stop loss up as the price rises. Sure you may miss the top but if we break 30k you will be able to walk that stop up even more. This ensures you lock in that profit. Simple yet effective.
With tax season on the horizon and most of the people that have invested in Bitcoin being in profit at this time we can all guess that the tax man will come knocking. Will this result in a mass cashout of BTC in order to pay the debts? Not necessarily. And let me explain why things could be different this year. People are receiving stimulus checks in the US. 600 USD per person/ and 600 per dependent. This is being sent to us after Xmas and the holidays so much of it can be used for something besides Xmas. Like Taxes??? Just a hunch folks. This stimulus could bolster Bitcoin. Especially because I imagine the US govt is just having this money printed like toilet paper. This leads to inflation and Bitcoin goes up when the USD inflates. Simple economics.
We reached 29600 in 2020 so I am very optimistic about the future of Bitcoin. Even if there is a pull back we should not get discouraged. A drop in price means another opportunity. After all my mentor Todd once said "when hasnt Bitcoin bounced back?" which is an accurate statement. As we enter 2021 I am cautiously optimistic. We have not seen the bottom fall out yet. But that could be because its a holiday today. I would watch the charts this coming Monday for sure as people will be getting back to work. We will see if the bulls remain in charge or the bears finally get a turn. I love this monthly chart. I hardly ever share it but I figured it would be the perfect day to do just that. I hope you all have a great 2021. Make good choices my friends. And always remember WTFDIK???
TLDR: Happy New Year. New ATH of 29600. Nice year bulls
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