I would like to talk about the relocation of Bitcoins over time and especially at a point that has been crucial for me to understand how Bitcoin is currently positioned among investors.
The relocation cycle is a period in which an asset is transferred from one hand to another.
Much of the Bitcoins have had several owners throughout its history, and it is a pattern that it is repeating today and therefore it must be closely monitored.
In 2014 there was a market crash very similar to the current one, in that period of approximately 3 years, the currencies were transferred from less confident investors to investors with a greater future prospects for the coin.
To my surprise, and what truly fascinates me about the current state of Bitcoin, is what happened in November 2018. When that long-term trend line was broken, many investors panicked and sold their assets, nevertheless at the same time on March 2019, there was taking place a purchase of the asset at low levels, a new transfer from dumb money to smart money, which is very positive for Bitcoin as it is now less prone to being sold. That could lead to a constraint of the offer of Bitcoins and if the demand keeps up, a price increase of the same.
If this transfer is completed we could see Bitcoin at a much higher levels.
The relocation cycle is a period in which an asset is transferred from one hand to another.
Much of the Bitcoins have had several owners throughout its history, and it is a pattern that it is repeating today and therefore it must be closely monitored.
In 2014 there was a market crash very similar to the current one, in that period of approximately 3 years, the currencies were transferred from less confident investors to investors with a greater future prospects for the coin.
To my surprise, and what truly fascinates me about the current state of Bitcoin, is what happened in November 2018. When that long-term trend line was broken, many investors panicked and sold their assets, nevertheless at the same time on March 2019, there was taking place a purchase of the asset at low levels, a new transfer from dumb money to smart money, which is very positive for Bitcoin as it is now less prone to being sold. That could lead to a constraint of the offer of Bitcoins and if the demand keeps up, a price increase of the same.
If this transfer is completed we could see Bitcoin at a much higher levels.