We’re finally emerging from the “Crypto Winter”… Bitcoin prices are going to run much higher… In the mailbag: “By what authority do some people justify forcing others to comply with their ideas?”…
In the March 19 Daily Cut, we passed on a big, bullish call from master trader Jeff Clark on the world’s first cryptocurrency, Bitcoin.
Since then, Bitcoin is up 22%.
And as you’ll see in today’s essay… it’s not too late to profit.
As we’ve been tracking for you, Bitcoin has been going through what pundits call the Crypto Winter – a long and painful period of falling prices.
From its all-time high of $20,089 in December 2017 to when Jeff made his call, Bitcoin fell 80% versus the dollar.
And the usual naysayers in the mainstream press were calling for Bitcoin to go all the way to zero. One piece on MarketWatch described it as a Bitcoin “death spiral.”
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He spends his days poring over charts looking for high-probability trades. And he had just spotted a bullish trade setup on Bitcoin’s price chart.
Based on his call, we told you to get ready for an “explosive move higher” from just above $4,000 – where it traded at the time – to $5,500.
We’re not all the way there yet. But as you can see from the chart below, the explosive rally Jeff predicted happened right on cue.
At writing, Bitcoin is trading for around $4,888.
That’s a gain of 22% in just over two weeks since we passed on Jeff’s call on March 19.
As Jeff told readers of our Market Minute e-letter yesterday…
The King of the Cryptocurrencies blasted $600 higher yesterday. That’s a 15% gain in one day… And, even after yesterday’s monster move higher, it still looks like bitcoin has room to run.
And he isn’t the only one here at Legacy Research who believes we’re finally emerging from the Crypto Winter. So does world-renowned crypto investing expert Teeka Tiwari.
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Here’s how Teeka explained it to paid-up subscribers of our crypto-focused Palm Beach Confidential advisory…
We’re finally starting to see some real signs of life come back into the crypto market. After 18 months of lower lows [a classic bearish trading pattern] bitcoin and the broad crypto market seem to be getting ready to emerge from “Crypto Winter.”
Since early February, we’ve seen bitcoin rise from $3,400 to $5,000… and the overall market go from $112 billion to $175 billion.
This move to $5,000 for Bitcoin has finally broken the downtrend line in place since early 2018. It is a very bullish sign of a new emerging change in trend from bear to bull.
You can see what Teeka is talking about in the chart below.
It shows a consistent bearish downtrend (diagonal red line) in the Bitcoin price going back to its all-time high in December 2017.
But as you can see, Bitcoin broke out of this bearish pattern on April 2.
Teeka has remained a long-term crypto bull throughout the Crypto Winter.
That’s because, as we showed you here, Teeka uses the pace of crypto adoption to gauge the health of the crypto market – not its market price.
And he says crypto adoption will accelerate in 2019, as mainstream financial institutions move into the space. Teeka…
Bit by bit, we are seeing the maturing of the space in front of our eyes. This adolescent is growing into a young adult. And the next catalysts that will drive the next boom in prices are the ones I’ve already talked to you about.
You have the launch of the Bakkt crypto trading platform by Intercontinental Exchange (ICE) – one of the world’s biggest exchange owners – this year. There’s also the imminent launch of Fidelity’s crypto custody solution, and the strong possibility of an exchange-traded fund (ETF) approval.
Why do these developments matter? Because it makes cryptos easier to own. And the easier it is to own… the more people that will own it. Teeka again…
Right now, it’s not that easy to open a crypto account… custody your crypto assets… and move them around. That’s been the Achilles’ heel of the crypto market for many years.
It’s not rocket science to buy, sell, and store cryptos now. But it’s work. And for an asset or a financial product to go mainstream, it can’t be work. That’s just the world that we live in. Your average everyday consumer just doesn’t want to bother. He wants to hit a button, buy it, store it, and be able to transfer it without having to muck about with 40-word passwords and crypto wallets.
Thanks to the developments Teeka has been tracking for his readers – from ICE’s Bakkt exchange, to Fidelity’s custody service, to applications for Bitcoin ETFs – we’re getting closer and closer to that reality.
Even after the recent upturn… Bitcoin is still down 75% from its peak.
But it’s starting a new uptrend. And two of Legacy’s most experienced analysts say now is the time to buy.
It’s not every day that two of our experts here at Legacy with such different approaches to investing make the same call at the same time. When that happens, it pays to listen.
Just remember to treat cryptos as a speculation. Don’t risk money you can’t afford to lose. Keep your position size small. And expect roller coaster-like price swings.
There’s a non-trivial chance that Bitcoin goes to zero and you lose your money. But if Bitcoin becomes a new global store of value – as Teeka believes it will – it could easily become a 10-bagger.
And that’s the perfect speculative setup. Because your losses are limited and the upside potential is still massive.
For more on how to buy Bitcoin, check out the simple, one-page guide Teeka and his team put together. As a Daily Cut reader, you can access it here.
If you’ve been following the Daily Cut mailbags over the past few weeks, you know there’s no shortage of opinions about the rise of socialism in America.
And last Wednesday, the subject turned to Social Security – a New Deal program that’s still with us today – when reader Pierrette R. said…
I doubt that the majority of the elderly people in our America would view Social Security or Medicare as enforced compassion. These have been remarkably successful programs that have allowed citizens to pay into programs that have sustained them in their retirement.
This is not the coddling of unproductive members of our society, it is allowing people to live with dignity in their old age.
But not everyone agrees…
When Social Security was passed in the ‘30s it was not intended to work. The average age of death would keep most people who paid in never claiming their right to benefits. Good health care increased the average age of death and increased the number of people able to claim as they increased the deduction to cover costs. It would have worked, but the government started spending the money. It was “trust fund” money, but no more.
– Tommy J.
Our elected misfits immediately spend every cent collected and borrow even more. Our government would be required to spend less than it takes in to really provide any actual, real social security. Right now, the chances of that are zero, nada, zip.
Gifted BS rules the day. Common folk are unable to recognize a government con job from our elected greedy misfits when they hear one.
– Bernard B.
Meantime, another reader seems to feel he has the definitive answer for the socialism vs. capitalism debate…
I am surprised that so many reader comments endorse government involvement in the economy and, indeed, in our personal lives as well. More government intervention into what would otherwise be a free market always lowers productivity and standards of living. Even more important is the moral aspect. More government equals less freedom.
By what authority do some people justify forcing others, ultimately at the point of a government gun, to comply with their ideas as to how others should live in their personal lives, social affairs, and economic exchanges? As long as someone’s activities are peaceful, voluntary, and honest, what they do is no one else’s business. There is no contest. Capitalism is absolutely superior to socialism.
– Marlow M.
Is capitalism superior to socialism, as Marlow M. says? Or does America need a mixed system, as other readers have proposed in recent weeks? Write us at feedback@legacyresearch.com.
Regards,
Chris Lowe
April 4, 2019
Lisbon, Portugal