Bitcoin And Elon Candles: The Big Elephant In The Room

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The big elephant in the room has always been Bitcoin. Since the notorious pandemic crash to $3,000, we have seen Bitcoin go on this massive rally. It has also left a lot of people in the dust, because they thought it was going to be a quick rally followed by a correction. At $13,000, it turned quite interesting. Very few people thought Bitcoin would tear through the all time high at around $20,000, and then keep ripping all the way to $60,000.

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Bitcoin And The Formation Of An Elon Candle

In this cycle, we haven't seen too many pullbacks, like we saw during the 2017 bull run, though both seem to be parabolic cycles. In 2017, we saw more pullbacks, which were mostly due to events like China banning Bitcoin and other FUD events. Furthermore, in this cycle we have so far seen only good news. With big institutions like MicroStrategy leading the way, big companies are allocating part of their reserves into Bitcoin, including Tesla.

Putting it on the company balance sheet is quite interesting, as publicly traded companies such as these need to disclose their holdings. MicroStrategy CEO Michael Saylor went out on seminars to explain to CEOs how to put Bitcoin on the corporate balance sheet of companies. When Tesla made its announcement, we saw the formation of an Elon candle on the candlestick charts as Bitcoin continued its climb. I foresee more Elon candles, too.

DOGE's Climb

Look what happened recently with DOGE, climbing from .06 to more than .70 cents. It regularly happens now that Elon tweets about BTC or DOGE, it forms these ‘Elon Candles’, which traders start to mark on the charts as they are not a natural price progression and that liquidity most gets taken out later

Alt-season has just started, like the last cycle. But, so far, all eyes have been on Bitcoin. We're at the point in the cycle where BTC has run out of a bit of steam. As we have the new stimulus money being handed out now, it feels to me, personally, that we are now in the alt-season.

Bitcoin's Dominance Dropping

Bitcoin dominance has also been dropping a little bit, too. Right now, it stands at 50% as many alts have begun to pop. Retail is also looking for those quick 10%, 20, 100% gains, and they will not buy into things that are so high like BTC. One of the mindsets they have is they don't want to buy 0.1 fraction of a Bitcoin. So, they would likely rather go on Coinbase or Binance and see what else is available.

With the same money they have to spend on Bitcoin, they can now buy, let's say, many litecoins, which might sound much better to a lot of people at the current juncture. That sentiment will also create an alt season, but won’t be as crazy as 2017.

Bitcoin might need a little bit of a resting period, because it's been going up straight. There’ve so far been two corrections. The alts may have their time to run here.

About the Author

Felix Mohr is better known as a crypto entrepreneur, certified fintech professional, and seasoned trader who founded his first company at the early age of 21. Since then, Felix has helped exceed the sales targets of multiple clients, including fintech companies, offshore banks, and e-commerce platforms. His core focus at MohrWolfe pertains to trading, investing, and researching the latest trends in global markets.



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