There is so much demand for Bitcoin, it may correct in terms of time instead of price!

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Many are calling for bitcoin to dip here around $19k, however that may not be the case...

Some traders and chartists and investors out there are starting to call for a drop in the price of bitcoin due to how far it has run and how fast.

Which is a pretty good reason.

In fact I was on here yesterday posting about how the GBTC chart is looking toppy and I took some of my holdings off the table in my IRA.

However, that doesn't necessarily mean the price is going to dip.

Also, just because GBTC pulls back does't mean that bitcoin will. GBTC isn't technically bitcoin.

It's a bitcoin investment trust that mostly tracks the price of bitcoin, but it tends to trade with varying degrees of premium and the current premium is reaching several month highs, which was a major reason why I decided to lock some profits.

More on that can be seen here:

https://hive.blog/hive-167922/@jrcornel/local-top-on-gbtc

Anyways, back to bitcoin...

The price of an asset either corrects in terms of its price or in terms of time.

Meaning that once an asset runs up a lot it can either pull back and retrace to let those sellers out, which is the most common form of a correction.

Or, it can correct in terms of time.

Meaning that the price can stay right up near its highs and basically continue to churn and go sideways as the demand is sufficient to keep the sellers that want out from pushing the price down much at all.

This happens until eventually the sellers run out of supply and the price rockets higher yet again.

Given the price action we are seeing over the last couple days and weeks, it's very possible that is what is going on with bitcoin...

image.png

(Source: https://bittrex.com/Market/Index?MarketName=USD-BTC)

As you can see it is basically a steady march higher with only very tiny dips along the way that immediately get bought right back up.

Some argue that this isn't as bullish for a prolonged move higher, as there was no significant dip really.

However, I would take the other side of that claim and say it actually sounds even more bullish for a prolonged move higher because it means that there was/is so much demand that they soaked up everything people were willing to sell and had plenty of ammo left higher to keep pushing higher.

There was so much demand that the price couldn't even dip when it was consolidating, it just went sideways.

Now, that sounds bullish to me!

There is no guarantee that is what is going on currently with bitcoin but the fact that any little dip is immediately bought right back gives some credence to this theory.

Based on the price action I am seeing, I think we are more likely to bust through $20k sooner than we are to see $17k again.

What do you see?

Stay informed my friends.

-Doc

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9 comments
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How hilariously unlucky of you to post this when Bitcoin was trading at $17k :D
Now an hour later at $18k.
The market is being tested.

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That danger of scheduling your posts ahead of time... sigh. There goes no dip November.

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I'm among those who wished for BTC to dip even a little and it did. Of course, the BTC dipping to around $17,800 also caused other alts to dip as well saving me a shorting order of which I had a minus unrealized PNL for weeks because of the prolonged pump.

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Well, Bitcoin has tracked it, it looks like it waited for your post before dropping back almost below $ 17,000.

Playful Bitcoin 😅

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Yep, talk about great timing eh? We can thank Donald Trump and co for the drop...

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