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Last week we mentioned that Bitcoin looked like it was waiting for a narrative to break that $80,000 barrier. It looks like it may be on the cusp of arrival following a productive weekend of price action and peace talks.
We saw Bitcoin fall back below $75k last week as we warned retail investors of the dangers of waiting around for lower prices. Meanwhile, smart money was taking advantage of every dip and pushing prices slightly higher on each move. This has been the case since the low in early February. It is fair to say that Bitcoin price action has felt boring and has not seemed to progress much, but in fact it has made substantial progress over the last few months. Bitcoin is up over 30% thanks to smart money buying the discounted prices while retail traders are waiting for a clear narrative to arrive.
That narrative may be here, coming in the form of a potential agreement within the Middle East. Yes, we have had a lot of fakeouts over the last month or so of failed peace talks, but in reality, this will be the narrative to give Bitcoin that kick back above $80k in the short term.
The key sign of the potential agreement is the oil price. The other day we mentioned oil prices rallying hard, with WTI Crude back above $110, but it has since fallen back below $100. US stock futures have opened higher and Bitcoin is making its way up too following the announcement by Trump that the US will guide ships through the Strait of Hormuz.
It is important to acknowledge that this conflict is short term noise and should not detract from Bitcoin’s true value or purpose. If anything, it has added to it and strengthened the case for Bitcoin as a neutral settlement layer. All it does is increase short term volatility and provide buying opportunities for those who have conviction for the long term. We are currently hovering a fraction below $80k. Whether the bottom is in for the cycle or not, those with conviction view these prices as generational opportunities to accumulate Bitcoin at major discounts.
Stormrake Spotlight: Pax Gold (PAXG) ($4,608)
Stormrake Spotlight: Pax Gold (PAXG) ($4,608)
