To The Moon

Now that I find time to write another article, I decide that it would be best to give another writeup on Bitcoin. Why? Numberous price action of Bitcoin seems to see the Bitcoin fluctuating between 31,000 USD and 41,500 USD. If you read my article awhile back when I first cautioned readers to be careful that once Bitcoin breaches the support at 48,000 USD, it would fall rapidly to 40,000 USD. Needless to say, as time has proven, it was correct but not so correct. I would have at that point in time, thought that Bitcoin will stabilise at 40,000 USD before the next price move be it a fall or increase.

But it was an incredible price action as usual that saw Bitcoin tanking to 31,000 USD on a Monday (think a couple of weeks ago), which saw a number of people getting squeezed out of margin call. I have highlighted prior to this event to warn people not to use leverage to trade Bitcoin be it long or short. As things happened, Bitcoin has since retested around 40,000 USD twice and 31,000 USD twice.. So what does it leave us? The good story for the time being is that the recent fall only see Bitcoin falling to around 33,500 USD but going back up to 38,000 USD.. 

At the time of writing (5.51 p.m.), Bitcoin is at 36,621 USD.... With it being able to move down or up equally, I bring attention to readers to my view that I would only consider Bitcoin if it falls below 17,000 USD. Even then, the price point and exact timing is not known. Does this mean I think Bitcoin is definitely going down? NO!!! NO!!! The truth here is that it is equally possible that it could break out of consolidation and go up. I heard people putting in price target of 100,000 USD and Cathie Wood putting in 500,000 USD price target for Bitcoin. For me, I would take it with a pinch of salt of Cathie Wood's view as it is a biased view.

But assuming it will go up to 100,000 USD and its true, it will be a 3x from here! For me, my view is that Tiger Brokers can easily be a 3x (i could be wrong) and being a fast growing company, there is potential for more in the long run so I rather keep a portion of my funds in Tiger Brokers' shares. 

Long story short is that if a trader (i) thinks 100,000 USD is the price target and (ii) is fine with a 3x return (bitcoin being at 36,000 USD now) and (iii) is fine with the risk profile of Bitcoin and (iv) can take the potential price fall to US$10,000 or even 3,500 USD before it reaches 100,000 USD, then it may be fine for that particular trader. For me, I will not touch Bitcoin now, be it a long or short position.

As always, our dear Elon Musk has an outsize influence on Bitcoin and cryptocurrencies' prices, so who knows what he will say to influence the price direction of Bitcoin and other related cryptocurrencies. As a sidenote, Dogecoin has rebounded from recent 1 week low of around 29 US cents to around 39 US cents now. Who knows what will happen? (Read my earlier article on Bitcoin and Dogecoin if you are keen). But as always, to me Dogecoin is a "lottery" currency in a way that its price movement is superlinked to Elon Musk, who can make it or break it. I recall Dogecoin has an infinite supply figure.

As always, the above should not be construed as any investment or trading advice.

$Coinbase Global, Inc.(COIN)$ ,