We are all wondering. Everyone talked about it over Thanksgiving (if you celebrate it). When will BTC break $100,000? Why hasn’t it already?
Of course, this milestone would be HUGE news for the crypto industry. Although it’s already happening, the news would feature Bitcoin much more if the six-figure threshold could be broken. I think it is widely believed that it is inevitable; the question is just: when?
In fact, although it may FEEL like we’ve already had a nice bull run, the 4-year crypto cycles say otherwise. Did you know that MOST of Bitcoin’s epic run-up during the last bull run happened in late 2020, not 2021? Most people remember 2021 as the big bull run, but in the Fall of 2020 when many crypto enthusiasts were still “sleeping,” Bitcoin quietly accomplished more than 75% of its gains for that cycle. Yeah, I know, surprising, isn’t it?
The reason 2021 felt so monumental was mostly due to the altcoin bull run that occurred then, NOT the moves of Bitcoin itself.
So far, the exact same pattern is repeating this time – as it usually does when it comes to crypto. Bitcoin has made an aggressive move up, and we are still patiently waiting for altcoins to follow.
WHAT IS A “SELL WALL”?
The reason Bitcoin hasn’t broken through $100K is that there is a sell wall at this price. That means that a huge number of Bitcoin holders have placed limit orders to sell their Bitcoin as it approaches $100K. This selling pressure has so far, drowned out the buying pressure. Meaning that there is more demand to sell than to buy at $100K, and hence the price keeps bouncing off of that number.
However, in speaking to my friends who are analysts, we are actually OPTIMISTIC about this situation. Why? Because if Bitcoin made one big thrust through $100K rather than bouncing off of it for a while, there would be a lot of selling among folks who were planning to take profits at this level.
On the other hand, each time we bounce down from $100K, we extinguish a little bit of that selling pressure, in significant chunks each time. This means that when we finally DO break through, it could be quite an epic run, as all of the selling pressure will have been satisfied. A lot of us are hoping that this is what occurs pretty soon. And again, if history is any teacher, we should see some very bullish moves in the next few months.
BITCOIN ECOSYSTEM SMALL-CAP GEM
In my last article I promised to share a small cap gem, so let’s do it!
One problem with the recently approved Bitcoin ETF’s in the United States is that it has attracted a lot of institutional capital which is flat-out unable to trade altcoins. Why is this? Well, historically, retail buyers have purchased their Bitcoin on exchanges and they can easily sell that Bitcoin and rotate into altcoins. This has been like clockwork in past cycles.
But institutional buyers are bound to stick with investing in stock market-grade ETF’s, so even if they wanted to, they can’t buy most altcoins.
This has lead to “lopsided” price action: Bitcoin goes up while altcoins do not.
However, one narrative I am keeping my eye on is what we talked about previously, Bitcoin Layer 2’s. This is where smart contracts can actually be overlaid on top of the Bitcoin Lightning Network. And this is not just a dream—it is happening! Three large-cap projects doing this right now are $STX, $ELA, and $CORE.
So the small-cap gem I really like is the primary DEX (decentralized exchange) within the CORE ecosystem. It is called Archer Swap, and the ticker is $BOW. It is sitting at just under the $1M market cap as I write this. To buy it, a person would need to “bridge” their assets into the CORE ecosystem, which does take a bit of crypto skill. However, it would make a great project for those interested in diving deeper into crypto! The skills you can learn here will serve you well throughout the bull run. You can visit the Core Dao website for a tutorial on how to bridge.
Again, the reason I like this altcoin is that it leverages the lopsided attention being given to Bitcoin right now because the CORE ecosystem is literally built on top of Bitcoin! Pretty cool, don’t you think?
Have you already read the previous article on Dogecoin? See you in the next article!
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