China strikes again. The central bank announced earlier today they will deem all crypto-related transactions illegal and crackdown harder on illegal crypto mining. I wonder if they're just secretly buying in every dip, wouldn't be surprised if the CCP came up with a tactic like that.
On the other hand, with all political/global economical tensions going around, maybe the West will embrace crypto to cause a disadvantage to China if they refuse to use it.
Last night we saw another drop that triggered our rebalance, we moved 50% into $USDT but are now buying back the coins as the setup looks like a bottom to me. A big bounce with nice volume is a great sign!
That being said, I think this is a very similar setup to the one we saw in September 2017. In all previous bull markets, we saw big corrections happen before the last phase of a bull market and I think this is the one for 2021! Below is the chart from 2017 when we had the China crypto ban as the catalyst. Can you see the similarity?
P.S. In mid-December 2017 $BTC was trading near $20k meaning that it did 7x in less than 3 months. I expect something similar to play out in the coming months, especially if we get an ETF approved! There are rumors that it will get approved in October