Today marked the end of the fifth straight week that bitcoin’s price finished negative on the weekly trading chart. This has happened only one time in history, during the 2014 bear market.
That time, the price rose for seven of the next eight weeks, peaking at 100% gains over roughly two months.
Does this week’s drop mark a double-bottom, that final capitulation before “only-up” begins again? Or is it the start of one final drop to the 200-week moving average of $21,700? Or, like 2014, will we get one last zoom before rolling over to the true, generational bottom somewhere much, much lower?
Perhaps we’ll have a deeper look into that later this week. Make sure you got my two updates from last week.
Scroll down for a poll, an article, a video, and a note for premium subscribers. Light rundown because it’s Mother’s Day. I promise I’ll make up for this!
Poll: will bitcoin's price ever go below $29,000 again?
Why Composability Matters For Web3
Bottom line: permissionless financial networks depend on independent components that everybody can use, not software protected by copyright.
My take: patent lawyers’ worst nightmare. With cryptocurrency, you can create the money that goes with the protocol—a sort of universal incentive to contribute and protect your creation. If you can create a financial protocol and the tokens that power that protocol, then reward yourself with a portion of the tokens, do you ever need to worry about protecting your intellectual property?
Why we care: people call cryptos Ponzi schemes but they’re basically incentive structures. You can program them to get whatever result you want, with less upfront cost and capital than building a business with proprietary algorithms that don’t work with other systems.
For a summary of crypto cycles in five minutes, watch this clip from the US Civil War movie, Glory.
Courage is not the absence of fear, but the strength to act in spite of it.
Relax and enjoy the ride!
