Bitcoin…have we hit the bottom of this bearish cycle and thus are we going to
move into a bull cycle? Well no one knows the true answer to that question,
but you can make an educated guess. So are you ready to be educated
by Professor Chico? Well you don’t really have a choice…because it’s time for Chico Crypto!!
Well there is no doubt…we have been bearish for a good amount of time.
Since the daily peak set on November 8th, there hasn’t been a confirmation
of a bull trend reversal. This means we have been in a bear cycle for 135 days!!
Now the last bearish cycle we experienced was back in 2020, after the April 13th daily close high,
we retraced all the way back down to below 30k by July 20th…but we can see a bullish trend
took over, stopping that bear trend in it’s tracks. That bear cycle only lasted 98 days…
So what the freak!? Why is this bear cycle taking so much longer?? Well actually let’s
look back at that chart…yes there has been no confirmation of a bull breakout just yet,
but since late January we have been setting a series of higher lows.
January 22nd we hit the lowest so far of just above 35k, February 21st we set a
higher low of just above 37k, and March 7th and 13th we set another higher low of 38k.
So what if January 22nd was the bottom?? Well from the high on November 8th to January 22nd 35k low
that is a bear cycle of just 75 days. Actually shorter than the last one….
So was 35k this cycles bottom?? Well there is some DATA that suggests around there is the bottom.
Plan B posted this chart last month of clusters where Bitcoin’s were last transacted and as we can
see, overwhelmingly around the 40k level is the place where Bitcoin’s were last transacted…over
3.5 million of the 19 million Bitcoin were last transacted at or around this level.
Remember this was posted by Plan B, last month February 26th…and looking at the price chat,
we were below 40k, looking like we were going back to 35k. What did Plan B say on this tweet
in regards to another major analyst Will Clemente exclaiming “40k is a very crucial level”...well
Mr. B replied “Indeed. Reclaming 40k would possibly be the start of the next leg up.”
Well we have reclaimed that level, and as of yesterday was sitting around
$42,500…so what is the level and break of it which would be the signal of a bull reversal, pretty
much confirming 35k was this bear cycles bottom? Well it’s the grand resistance of this bear cycle,
which we have failed to blow through on 4 occasions. The grand resistance of 45k.
And crypto twitter and everyone agrees this is the level that needs to be broken for
bull confirmation. Searching by bitcoin 45k on twitter we see the tweets “45k we break this,
next 50 to 53k” “If we can eat through the supply ahead at $45k, we are going to moon” ”Slow and
steady grind for bitcoin up to the 43-45k resistance level. Maybe this time it breaks”
So are we going to break it soon?? Well last week I posted this candid video titled “Breaking!
Bitcoin Will do the Unexpected Next Week!”
What was the unexpected?? Well let’s just listen in to what I had to say…
I had a strong feeling we were going to move up to grand resistance of 45k
and break it this week…so what was my reasoning!???
Do Know, and Terra Luna buying up Bitcoin for their reserves to back the stable coin UST.
Now last week there was no information about when they would begin doing this,
I just had a feeling it was going to begin this week.
Well did it? Yesiree Bobo it did..crypto slate reported on it “Terra buys $125 million of
Bitcoin for its reserve”...and yes there was an etherscan transaction from a known Terra
Wallet for 125 million which was reported to be going to buy bitcoin for the reserves!
Now remember, initially it was leaked that they would be buying $3 billion
for the reserves…but then it was upped to $10 billion by Do Kwon himself on Twitter.
Well just 2 days ago, Cointelegraph put out an article on this and reached out
to Do Kwon to see if this buying has begun, or it’s just an idea being floated and he replied
“I don’t understand the distinction, We’re already buying Bitcoin.”
So that 125 million dollar move…it has to be for a coming bitcoin buy. 125 million is just about
4.2 percent of the 3 billion, and just 1.25 percent of the 10 billion they said they are
going to buy. Checking out the price chart, the buy pumped bitcoin from under $41000 to
43,000. What do you think is going to happen when they make more buys for the reserves?
PAMP baby PAMP and bitcoin will finally break the grand resistance of 45k.
Although is there more to this Terra Luna Bitcoin buy story than meets the
eye? And it involves another altcoin??
Well March 5th, before all the news came out about the Billions of dollars in Bitcoin being
bought up by Terra Luna, a Chad Barraford, core dev for thorchain Rune tweeted this
“the worlds biggest decentralized stable coin, $UST, is getting a Bitcoin pair on a
decentralized exchange via THORChain. Do i really need to explain why this is huge? why isn’t this
bigger news? To clarify, the integration means someone, in one trade, can swap BTC to UST & back,
without being KYC’ed or ask permission. You can’t fist pump bitcoin’s decentralization then trade
to a centralized stable coin ( $USDT) using a centralized exchange. $UST with $RUNE is the way.
And then a Nirvan says in reply to this “We need you and Do Kwon to do a live Twitter space!!
Of which Do Kwon replies “Down”....
So what does this mean?? Well a Block Nomada on twitter summed it up very nicely. He said
“$UST on Lightning Network. That would really bring $btc to a new transactional
and usability era. A decentralized stablecoin redeemable for the decentralized apex asset.
Terra Blockchain merging with Bitcoin, powered by #ThorChain. Just Wow! #LightningNetwork
Now there are hints that this has been coming. Back in August of last year, Do Kwon was on a
podcast, the Modern Finance and Runebase summed up the conversation in a blog. This is what was
said back in August by Do “In a recent episode of Kevin Rose's Modern Finance Podcast, Terraform
Labs Founder & CEO Do Kwon exalted THORChain's potential to bring Bitcoin and other disparate
crypto assets into DeFi.” “Asked by Rose, Kwon went on to reveal that the Terra and THORChain
teams will be setting up relayers so users can send assets between the two ecosystems seamlessly”
Then back in January of this year, the Thorchain Twitter tweeted
“2022 is the year of THORChain. What are you most excited to see on the network?
And guess who replied. Do Kwon with “U dot dot dot….he was hinting at UST”
Well let’s just hear this chat from Do, about his holdings…what he holds.
His second biggest holding outside of the Cosmos ecosystem is Rune from Thorchain!! I must say it
sounds like there is something big a brewing, and the hints are all there. Remember Terra Luna has
already reclaimed its old all time high. Could Thorchain be the next one in line?
Well it still has a way to go, and if things play out like they seem,
it’s a high possibility in my opinion. Cheers I’ll see you next time!