Have you ever heard the saying, “Buy when there’s blood in the streets.”
Last week I wrote “everything but Bitcoin has a chance to go much higher in short-order. Yes, Bitcoin will go higher as well. Most likely post 2/8/25.”
And yesterday, one of my friends who is new in the crypto space texted me, “Damnnnn taking some hits this week.”
There is blood in the streets. Total capitulation across all sh*tcoins. Yes, Bitcoin dropped too but it hasn’t taken out its 1/13/25 low. Pretty much everything else has.
Look at Ethereum. It crashed down to the low from back in August. But do you see what I see? It bounced off that low and there is a similar massive volume spike. This is what capitulation looks like.
And remember that Bitcoin dominance chart I shared where I mentioned that it looked to be topping out? It didn’t. Here’s a chart from today. Massive spike to new highs.
Remember Bitcoin has dropped so what this chart is showing is that sh*tcoins have been destroyed.
But in my opinion, this is not a time to be scared. This is a time to buy.
Saturday marks 2/8/25 which is when I believe Time will allow price to move higher for Bitcoin. And not just that, it will allow sh*tcoins to outperform and rocket higher.
Let’s look at this briefly from another perspective. Here’s the USD:
This is a weekly chart, so a longer time frame. Last week I wrote how the USD dropped and bounced off support (prior resistance). We had a big rally in the USD leading into Trump taking office and all his talk about tariffs.
Then the USD sold off as everyone started suggesting the tariffs were just a negotiation tactic. Well, this weekend they became real and the dollar has soared.
But it hasn’t taken out the new highs. My view is that if the dollar holds below the highs this week, the top is in. The tariff situation can’t get worse. I believe the dollar heads lower from here and continues lower for a while.
Weaker dollar means more liquidity. More liquidity means higher Bitcoin. Higher Bitcoin with lower Bitcoin dominance means much higher sh*tcoins.
This is not the weak to get scared. I’m not. There’s blood in the streets and I’m buying.
*Not financial advice, educational purposes only.