Self-Fulfilling Prophecy or Positive Feedback Loop? Bitcoin Traders Question Price Rally
While the price of bitcoin surged more than 16% between 11th and 12th June, the exact reason for the increase remains a matter of debate. As reported yesterday, market observers have pegged the rally on a wide range of potential inciting factors, including concerns about China's economic strength, fears of a potential UK exit from the European Union and anticipation surrounding 'the halving' – an upcoming change to the bitcoin network that will find bitcoin miners receiving fewer bitcoins in exchange for transaction processing services. But the variety of responses would seem to point to....
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The programmatic reduction in block reward creates a self-fulfilling prophecy of extremely bullish price action.
BTC/USD is more likely to reach $300,000 in a year's time, the popular analyst says, thanks to an "amplified bullish feedback loop." Bitcoin (BTC) hitting $300,000 in just one year’s time is “not out of the question,” popular statistician Willy Woo says.In a series of tweets on Dec. 1, Woo stated that he has “never been so bullish” on Bitcoin’s prospects for 2021.Woo eyes "amplified bullish feedback loop"Discussing potential price trajectory, he confirmed that he was looking at six figures by December next year. “My Top Model suggesting $200k per BTC by end of 2021 looks conservative,....
Historically, hyperinflation is a positive feedback loop of free money, illusionary wealth and greed.
Last week’s article stated: Well the sharp move came, and instead of rejecting resistance the price shot sharply above it to a high of around US$273. The RSI did get overbought and price sharply snapped back. It is now consolidating above the 200 day EMA, which it broke above in the latest rally. OBV continues to remain at elevated levels (see chart below), in fact it hasn’t been this high since October of 2014 when price was above US$440. A lot of this volume still appears to be wash trading, however as volume has picked up so has the price. The big problem here is that price is not....
Bitcoin continues to show strength as it bounces back from profit-taking overnight, making yet another new swing high moments ago. The question on traders mind everywhere is, no doubt: ’How far will this go?” While I have no definitive answers to that question, I can postulate guesses based on what the charts seem to be saying. We have seen this chart a few times in the past few days. The 3rd arc pair will presumably be met in the $1030 area. This arc is typically strong resistance, so my guess is that there will be profit-taking there. However, depending on what happens when price gets....