Elon is again tweeting anti-BTC sentiment and investors are paniced that this could kick off a deep correction or even kick start the bear market. Ran thinks that the recent BTC fud from Elon was just an excuse for the market to dump. BTC has had months of weakening institutional inflows that have (for now) put the brakes on its momentum.
Sheldon says this BTC retracement is nothing to worry about. There was a big gap up on a green candle in early February this year. Price needs to go back and retrace this level more slowly. Expect a consolidation in the range of this candle before we head back higher.
Ran says that this is the first 2021 pullback that has reminded him of the violent 2017 bull run’s corrections.
We’ve been spoiled in 2021 with pullbacks measured in a small number of days. This latest BTC pullback is now 33 days long and cumulatively a 35% retracement. Elon’s latest tweets about BTC’s heavy energy usage has caused people to question the viability of BTC as a long term store-of-value asset. This type of questioning whether an asset is really viable long-term marks an important low-point in investor sentiment, and Ran notes that this is the first time he's hearing these doubts since 2017. Ran is still bullish and is looking for a $60K near-term target after we're done consolidating.
Is Elon the Problem … or is the Bitcoin Community Toxic?
Elon has caused us to take a deep look at Bitcoin’s fundamentals, and Ran is confident that BTC will come out stronger. Ran worries that Elon is now going to tell other CEOs to stay away from Bitcoin because of the nasty backlash he has gotten. Ran places much of the blame on these Bitcoin maximalists who started attacking Elon when he began promoting Doge and haven't let up.
Ran takes it further and says we should welcome all people - including Doge people and Shiba Inu people - into our crypto ecosystem. How can we be so antagonistic towards Elon and expect him to have nice things to say about the crypto ecosystem? If people have issues with Elon’s tweets, they should educate him and not attack him. The enemies of crypto are outside of our world, our fight is with banks and the traditional financial institutions. We don’t want to turn nasty against the people who are already inside with us. Let’s not squabble about tribal differences and inadvertently plunge the price of BTC and the entire alt ecosystem. Let’s not blow the biggest opportunity of our lifetime.
Keep Your Eyes on The Prize - Cardano, Polkadot and Solana are all Looking Great
- Ran is impressed with the quality of apps launching on Cardano. The Gero wallet launching today is a “work of art” and he expects the token launch today to do quite well.
- Over 7,000 developers have signed up for the Solana Hackathon.
- Pyth on Solana is the most accurate oracle that Ran has yet seen.
- Polkadot now has parachains working on their testnet.
Sheldon's Near Term Price Targets
- Sheldon has a $70 1st target for Solana , $83 as a 2nd target (Ran has an $80 target near term for Solana).
- Dot: $60 1st target, $80 2nd target.
- Kusama: $760 1st target, $1040 2nd target.
