Bitcoin Recovers to $40K — Zoom Out To See Why You Should Stay Bullish on Bitcoin

Bitcoin is back above $40K. Bitcoiners are obviously not surprised by this rapid recovery of the Bitcoin price. For those who lack confidence in the Bitcoin revolution, this is another great lesson: you should never doubt Bitcoin.

As I write this, the price of Bitcoin is $40.3K.

Bitcoin is likely to test the $42K resistance in the coming hours. This was rejected several times last week after the strong rebound from the $30K support. If Bitcoin were to break this resistance, we could see a continuation of this rapid recovery.

You shouldn’t be surprised by such a recovery.

Indeed, as I have been telling you for several days, this Bitcoin price crash has not changed the fundamentals of Bitcoin in any way. The reasons behind the crash are rather to be found in those who saw a golden opportunity to manipulate the price of Bitcoin to their advantage.

At the forefront of these big investors is probably Elon Musk as I revealed in my article “Bitcoin Price Manipulation 101 by Elon Musk”. The fact that Elon Musk is once again positive about Bitcoin and its environmental impact is for me further proof of the theory I developed in my article.

The FUD from China is still present, but investors are slowly starting to regain their sense of logical reasoning. Panic is giving way to reflection.

For some, it is a bit late. Even more so for those who sold their BTC at a loss during this episode that only free markets can offer. Since Bitcoin is the only truly free market in the world, you shouldn’t be surprised by its price volatility.

Instead, you should get used to it so that it becomes your best ally. To do this, of course, you need to have fundamental confidence in the Bitcoin revolution. The rest is a matter of patience.

These simple qualities are all too rare in the investment world. Yet they are the qualities that all successful investors possess and cultivate throughout their lives.

By being patient, you will be able to better control your emotions. From then on, you’ll be able to step back from the chaos that can sometimes strike the cryptocurrency industry.

During this May 2021 episode, those who were able to step back and see the bigger picture understood that there was every reason to remain bullish on Bitcoin.

On the one hand, you have the macroeconomic fundamentals that remain the same: the Fed and other central banks continue to print money out of thin air in phenomenal quantities. The Fed is keeping rates at zero while continuing to conduct a massive asset purchase program:

At the same time, inflation has just reached 4.2% for April 2021 in the US. Although the Fed remains in denial, this inflation is likely to remain persistently high in the months to come.

In the meantime, Bitcoin continues to be the best choice to hedge against this great monetary inflation with disastrous consequences for many. Institutional investors continue to flock to buy Bitcoin. The movement started by Paul Tudor Jones in May 2020 is not about to stop.

Former Bitcoin opponent Ray Dalio has just admitted to owning Bitcoin himself. Everyone is coming around to Bitcoin. One after another, Bitcoin’s opponents are coming to terms with the reality that Bitcoin’s success is inevitable.

From that point on, they have only one solution: evolve to avoid being overtaken by such a monetary revolution.

Large companies will continue to buy Bitcoin, following the example of Michael J. Saylor, who has been applying a DCA (Dollar-Cost Averaging) strategy with Bitcoin since August 2020. In a few years, the founder of MicroStrategy will be considered the best CEO of the 2020 decade.

Elon Musk explained that Tesla did not sell its Bitcoin in the midst of the storm he himself started. Don’t be surprised if Tesla announces it holds more BTC when it releases its quarterly results in July 2021.

Other companies will continue to make Bitcoin an important part of their strategy for allocating their cash reserves.

Taproot is in the process of being activated by the majority of miners in the Bitcoin network. This will be finally sealed in early June 2021.

Taproot is a proposed upgrade to the Bitcoin protocol combining the Schnorr signature algorithm with MAST (Merklized Abstract Syntax Trees) and a new scripting language called Tapscript. Taproot will increase the flexibility of Bitcoin’s smart contracts while providing more privacy, as complex transactions cannot be distinguished from regular transactions.

Finally, Taproot will improve the scalability of the protocol, preventing all contractual conditions from being processed by the network and cluttering the Bitcoin blockchain.

More and more talent is joining the Bitcoin world to build services and products. Companies are jumping in to take advantage of the Bitcoin revolution. This phenomenon will only intensify in the coming years as awareness of Bitcoin continues to grow.

Source: https://www.inbitcoinwetrust.net/bitcoin-recovers-to-40k-zoom-out-to-see-why-you-should-stay-bullish-on-bitcoin-c9d88d5f5d01?source=rss——-8—————–cryptocurrency