hey what's going on guys just recently bitcoin surpassed sixteen thousand dollars it seems like we see new local high every week in this video i will explain why this trend is likely to continue then we will examine what next milestone for bitcoin is this video is brought to you by bastchangecom bestchange is a trusted and reliable cryptocurrency exchanger here you can find out where you can buy sell exchange thousands of popular cryptocurrencies a purchase with a debit or credit card with various payment systems to exchange crypto on the left hand side select the currency that you have and the currency you want to exchange to at the center you will see the list of reliable and trusted exchangers by default the exchanges with the best rates are the top of the list choose an exchanger that suits you click on it go to the website and follow the process to exchange your crypto so buy or sell any cryptocurrencies check the link to the bestchange
com in the description box below this is a very interesting chart that was created by glassnode black line is obvious bitcoin price action and the orange line represents balances on exchanges it's important to notice that the current balance on crypto exchanges and the bitcoin price divergence is very very bullish sign for bitcoin when we see less and less bitcoin on cryptocurrency exchanges it means that strong hands investors taking the bitcoin of exchanges and moving them most likely to their hardware wallets there is only one reason why bitcoin is leaving exchanges is because investors are not planning to sell those bitcoins but rather accumulate more and more btc and most likely some safer place we have seen similar situations before the 2017 bull market run we saw investors move the bitcoin from exchanges however soon after that massive bitcoin balance starts to appear on exchanges do you think those strong hands investors move bitcoin back to exchanges ah i don't think so this massive bitcoin balance starts to increase due to the new retail investors and speculators start buying bitcoin and other cryptocurrencies also 95 of these newbies are not real investors they just want to trade because they believe they can make more money by trading and of course you have to keep your cryptocurrency on exchanges to be involved in active trading will we see a reversal and more balances on exchanges soon i think we will but i don't think it will happen as drastic as it was back in 2017 at least not yet according to google trend newbies and retail investors are still asleep right now mostly the smart money is scooping up bitcoin my guess is when we'll see bitcoin at new all-time high and potentially even higher those ships will start to waken up and continue moving bitcoin higher another very interesting chart we have here is mare's multiple indicator introduced by trace major as a way to analyze the current price of bitcoin against its long-range historical price movement of 200 days moving average the mary's multiple highlights when bitcoins overbought oversold in the context of the long-term frame the mars multiple is calculated by dividing the bitcoin price by the 200-day moving average of the price current mere multiple ratio is at around 15 that's around historic average meaning bitcoin is still fairly priced but there are very interesting patterns that we have to pay attention to in 2012 around bitcoin having mars multiple was at around 15 as being comprised increase the ratio increased as well in 2016 bitcoin having the same thing mary's multiple was at 15 when bitcoin price started to increase the ratio increased as well and here we are there is multiple also at 15 when bitcoin price starts to pick up more and more the ratio will increase as well and bitcoin might become overpriced but we're still not there yet so according to this chart it's still not too late to buy bitcoin another very interesting point to observe most of the times when bitcoin price crosses up for a 200 day moving average bitcoin enters into the bull market this is what we saw back in 2012 this is what we saw in 2016 and this is exactly what we are seeing right now if this is not bullish enough maybe you should keep all your money in the bank account while inflation is eating your money away also let's take a look what is going on with ethereum 2
0 beacon chain launch as i explained in my other video we need 524 288 eth to start the genesis phase so far we only have 64 000 ech has been deposited into the contract of slightly more than 12 percent as of the time with this recording let's take a look at the number of daily eth that has been deposited so far into the contract only in two initial days we had large eth volume and then the volume drop however i do believe we will see simon reversion and more gradual volume closer to the launch day if you look at the eth price right now we are currently about to surpass new local high current ech is trading at around 470 dollars per coin as of the time of this recording in september it h reached 488 per coin briefly then it dropped right now ahead of ethereum 20 we have a huge catalyst for ethereum to continue to grow in price now let's take a moment and see what lynn alden the founder of lin aldean investment strategy has to say about the bitcoin's next milestone let's take a look back in i think 2017 you had an analysis of bitcoin that was uh overall bearish and since then in your 2020 blog post you've turned bullish so could you take a moment to explain the the factors that led you to change your position there uh you know at the time we were seeing you know we saw the hard fork uh and then we're also seeing uh you know bitcoin's market share of the cryptocurrency space was declining and it's my i was concerned with dilution right so so if there's no kind of one network effect that kind of retains control uh you could see that kind of market cap distributed among multiple different protocols that i was like you know i'm just gonna watch this for now i think there's a lot of enthusiasm here uh and so you know about two and a half years later in in early 2020 here uh bitcoin basically round tripped all the way to the same price uh so it's in like the six to seven thousand range uh but so you get at the same price as you could back in you know 2017 but the network effect was much stronger i mean the ecosystem around bitcoin was stronger uh that the use case was stronger the macro backdrop was stronger so it could have been we could have had for example a challenger come along and possibly you know take some market share uh we could have had issues around the some of the hard forks we could have had more split communities uh but so far you know bitcoin has survived all of those kind of various kind of uh riskier moments for it uh so you know now from from looking back in in early 2020 when i made my investment uh you know a lot of those initial concerns were addressed it survived a lot of the the the challenges coming up to it i think the path dependency is is a key thing and i incorporated that into part of my argument that you know bitcoin came first uh there could have been potentially an early challenger to kind of take it away a little bit uh but from what we've seen you know it built up that that security advantage from a very really early period and because especially as a store of value security is the most important attribute for for you know what a digital asset to have and so the fact that bitcoin has the highest hash rate it has tons of decentralization uh you know really kind of you know as a really kind of fixed monetary policy right we know exactly how many bitcoins uh pretty much are going to be created over any given time period uh whereas you don't get that with some of the other protocols so you know it's basically only strengthen the argument over time and the further we go the more we can we can look at price history we can look at you know market share we can look at all the different ways of measuring a network effect and see that you know the thesis for bitcoins never in effect is playing out if we see this like doubling or tripling of bitcoin's network how high what do you think that will do to the price well i think you know i think the market cap could easily go to over a trillion uh because that's that's still a small fraction of gold's market cap i mean gold you know depending on the estimate is somewhere in the ballpark of a 10 trillion dollar market capitalization uh so when if bitcoin ever reaches 1 trillion that's still 10 the size of gold so even if you just only call it a digital gold and you forget the fact that it has other use cases as well but you say okay say it's just a store of value uh you know could it reach 10 of goals market cap i think so uh so you know as you get more and more people into it uh that can definitely put up the price pretty far uh and you know some of the analysis i did show you know how much it grew in each halving cycle and though even though each having cycle it has explosive price gains it's you know each cycle is a little bit less in percentage terms than the one before it just because you're starting from a bigger base uh but you know even even if this having cycles like one quarter of the magnitude or the previous halving cycle that's still a very very large jump uh for the market capitalization uh so you know i'm kind of i'm kind of looking at that that market cap of over a trillion as as kind of my you know first target we're looking at here what i like about lynne alden she's probably the most rational and neutral person in investment business i have ever seen usually people with the macroeconomic approach and especially in cryptocurrency space tends to build their own bias beliefs and then defeat those narratives regardless if they are right or wrong it's good to be able to zoom out and look at the bigger picture and unconsistently look for the information that fits your narrative i like how she rationalized her bitcoin investment idea she was bearish in 2017 when there was lots of hype around bitcoin and countless number of hard forks not only in bitcoin but also in other major cryptocurrencies it was hard to pick a winner when bitcoin could potentially lose a lot of market share due to all those hard forks but now three years later after the bitcoin network became so much stronger after the dust settles and after the sky became clear we can tell for sure that beacon cash litecoin ripple xrp and many other that were in top 10 back in 2017 will not take over bitcoin there doesn't have to be only one winner but as long as you eliminate losers you will be just fine us howard marks once said investing is negative art meaning we should try to avoid losers more than pick winners also elin alden said that the next big milestone for bitcoin is one trillion dollars what no hold up one trillion dollars not per coin but per market cap if we reach one trillion dollars market cap we would reach 10 of gold market cap and this would put one single btc over fifty thousand dollars sounds good to me let me know what do you guys think what is the next milestone for bitcoin leave your thoughts in the comment section below smash that like button and subscribe for more videos
