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Bitcoin Supremacy: 🤏 Limited Supply

Croxroad

09 Sep 2023 — 4 min read

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🐂 Speculators Gets to taste their own medicine by BTC

People who were speculating on the price of Bitcoin experienced losses. Initially, the price of Bitcoin sharply increased overnight, causing excitement among speculators who hoped to profit from this rise. However, the price quickly changed direction and dropped, erasing all the gains that had been made earlier. In other words, those who were hoping to make money from the price increase ended up losing money when the price went back down. This situation highlights the volatile nature of Bitcoin and the risks associated with speculating on its price movements.

Bitcoin's price surged above $26,400 but later dropped below $26,000, causing liquidation of both short and long positions, as per data from Cointelegraph Markets Pro and TradingView.

Late traders who tried to chase the market's ups and downs faced consequences. CoinGlass data showed that short positions worth $23.5 million were liquidated on September 7, and the total for long positions on September 8 is still unknown.

Another trader, Daan Crypto Trades, emphasized the importance of Bitcoin reclaiming the ground it had lost in August. He noted that Bitcoin had managed to break above the September monthly open, which it had tested multiple times, and was currently in the process of retesting it, as he shared with X subscribers on that day.

CoinGlass data confirms that historically, September has often seen Bitcoin prices decrease by nearly 10%. This aligns with market expectations for the year 2023.

Returning to early September levels, BTC/USD maintained the 200-day exponential moving average (EMA) at $25,674. According to Michaël van de Poppe, CEO of trading firm Eight, analyzing Bitcoin's previous interactions with the 200-week EMA suggests that the market may be experiencing its final price drop this time around. Van de Poppe particularly references the 2015 cycle and the participation of new institutions in the market, making this correction appear as the ultimate one.

🔊 2025 Bitcoin Price Projection

Hodlers should watch November 2024 for clues on when Bitcoin's price may surge, according to CryptoCon.

BTC at $25,861 faces a 'mid-cycle lull' challenge before a late 2024 bull run, per CryptoCon's 'November 28th Cycles Theory,' pointing to a BTC all-time high in 2025.

In the ongoing debate about Bitcoin's four-year price cycle, CryptoCon suggests that understanding BTC/USD behavior might be simpler than many think. Revealing the 'November 28th' chart on X (formerly Twitter), he highlights this date as a crucial pivot point in the year, along with a three-week period on either side.

Explaining his theory, CryptoCon said, 'Using 4-year time cycles against my Theory perfectly mirrors Bitcoin's behavior since its inception. These cycles are anchored around the date of the first halving, November 28th. Bitcoin's price action commenced at its initial bottom on October 8th, 2010. Every four years, the cycle curves peak, with tops and bottoms occurring approximately 21 days before or after November 28th, aligning with their respective points on the curve. Tops occur during the upward swing, while bottoms coincide with the pinnacle.’

The chart indicates that every four years, November 28 marks the start of a 'bull run launch' for Bitcoin. The most recent one occurred in 2020 when BTC/USD surpassed its previous all-time high (ATH) and reached its current record of $69,000 a year later.

The next significant date to watch is November 2024. Until then, BTC's price action is expected to experience a 'mid-cycle lull.'

CryptoCon elaborated, 'Following the Bitcoin bottom, the price initiates an early move in the first cycle (shown in orange) and then enters a period of a 'mid-cycle lull.'

After Bitcoin reaches its bottom, it starts an initial move in the first cycle (indicated in orange) and then transitions into a 'mid-cycle lull.' This phase is the longest part of the cycle, during which Bitcoin's price hovers around the median price, equivalent to half of the previous all-time high, until the curve reaches its lowest point.

Some argue that hodlers may only witness modest gains before the upcoming event, scheduled for April next year.

In a recent interview with Cointelegraph, Filbfilb, the co-founder of trading suite DecenTrader, remained optimistic and set a target of $46,000 for the halving, with $35,000 predicted for the year-end.

Meanwhile, in his latest newsletter published on September 5, CryptoCon summarized the BTC price behavior in 2023 as a 'bull market fakeout.' He noted, 'This makes it appear as if the bull market has begun with the triggering of many signals, but then at some point, the price fails to continue.'

🤏 Limited Supply

Bitcoin's limited supply is a fundamental aspect of its design, with a fixed cap of 21 million coins, and periodic halving events that reduce the rate of new coin creation. This scarcity distinguishes Bitcoin from traditional fiat currencies, which can be printed in unlimited quantities by central authorities. The controlled supply, combined with increasing demand, has led many to view Bitcoin as a potential store of value and a hedge against inflation. This limited supply, coupled with its decentralized nature and security features, contributes to Bitcoin's appeal as a digital asset with the potential for long-term value appreciation.