Prices A Bit Lofty? Bitcoin Breakout
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Alright, let’s first begin with Bitcoin as we know that the usual Thanksgiving table talk has boosted the price here driving most likely new players into the market. We are better patient buyers here and Magnelibra will never advocate for chasing Bitcoin higher, its just not the correct strategy. The correct strategy is a slow and steady dollar cost average and let the momentum gamblers chase things. We have watched this from the beginning and we know better. All the talk now is that once ETFs are approved, this thing will take off. Yes we agree fundamentally with the premise that a fixed supply of anything vs a healthy demand will vis a vis, rise in price. We will not dispute that claim, but rather, we will question the veracity of that appetite from main street that truly doesn’t even want to play in this arena. Remember the days of Jaime Dimon of JPMorgan Chase and the rest of Wall Street demonizing Bitcoin, now, all of a sudden they are all in?
Hmm, well as long time readers know, we wouldn’t touch an ETF for Bitcoin with a 10ft pole, as it is the antithesis of the construct itself, adding nothing more than another counterparty layer via the Wall Street gang. Sorry that is not what Bitcoin is intended for. Bitcoin is a technology and its meant for those with a longer term vision of future monetary constructs will look like and we do believe immutable and decentralized is the future. So no, they can keep their ETF pseudo Bitcoin products. We would rather suggest go right to the source, use a reputable site like Coinbase.com, set up a healthy long term buy program and don’t bother ever looking at it for a long long time! We know many employ this strategy and even Bravenewcoin.com reported that
“between November 17th and December 2nd, over 37,000BTC, well over a Billion US Dollars, has been removed from centralized exchanges”
Honestly that is the best option and if you need help, please reach out to us via direct phone or email and we would be glad to send you a whitepaper we wrote back in 2015 and even walk you through the set up process for Coinbase, yes we believe in this that much. There are many more options once you control your fate and buying Bitcoin on Coinbase seems to be the safest route and an even safer one would be to pull them off into cold storage, but that takes careful planning and diligence. It is a very big responsibility to control your own Bitcoin but it is the safest of all plays. Anyway reach out to us if you want help navigating that arena.
Ok so we will not chase Bitcoin here just so you know, we feel $36k is a decent level backed up by $30k and $27k where we would rather be patient longer term buyers. As for now the momentum is up and is now at the 50% fib retrace:
We also saw the shiny metals spike last night but someone immediately dumped right into those highs and Gold has pulled back almost $115 off those highs:
We understand everyone is giddy that the FRB is done raising rates, but I guess the public doesn’t realize that if they are done, well that means the economy is going into the crapper. This isn’t the kind of environment where you want to chase risk assets, yeah QE sounds great, but that is the farthest thing from JPowells mind right now.
The Nasdaq futures are having an off morning so far down over 270 points well off 16k for now, the same failure point as July this year:
Alright, so that is where we stand, a lot of risk piling into highs that are now taking some heat, so let’s see how the dust settles today.
