If you ever doubt the power of Big Round Numbers, the recent rally should set you right. I’ve said it so many times in the past – – – humans are crazy about these psychological barriers, and with Bitcoin, I knew once that $20,000 was pushed out of the way, there would be an absolute scramble on board. Thus, we get more than a 20% gain in a matter of hours:
The funny thing is that, insane as this is, Bitcoin at $20,000 is now the “bargain” level. From a charting perspective, $20,000 would be a gift from above! It’s hard to say if anyone will get the chance. These bursts are sometimes followed by second bites at the proverbial apple, and sometimes there is no looking back.
Not all the coins are on board, but Bitcoin is pretty much what the world knows and cares about. There are some technical interesting co-participants, however, such as Litecoin. Indeed, the whole crypto world is vastly more chart-friendly than any other asset category.
And you know who is finally starting to wake up? Gold! I think the theme here is essentially Assets To Protect From Central Bank Insanity, and finally the crypto mania is bleeding over into an asset which you can actually hold, touch, and, let’s face it, is kinda pretty.
