Bitcoin Neutral Zone – Cryptocurrency volatility and uncertainty are peaking. Get in? Stay out? Or HODL?
Why has it been so quiet here at CryptoCapers? We find ourselves in a Bitcoin Neutral Zone. Our high standards in journalism prevent us from churning out endless articles with no appreciable value or meaningful contribution to the cryptocoin world. We hold chart readers in the highest esteem yet cast a critical eye on Bitcoin cheerleaders like Tom Lee who predicted Bitcoin would be $20,000+ by July. In July he adjusted his forecasts to a $25,000 BTC price by the end of this year.
While we also remain bullish on Bitcoin and other established cryptocoins in the future, the near term is uncertain. Bitcoin has been in a $6000-$7000 state of flux for a very long time by Bitcoin standards. With no sources of any news — good or bad — we are truly in a Bitcoin Neutral Zone here. I am still looking to roll out a massive Bitcoin mining farm based on the latest generation ASIC Bitcoin miners now available at bargain basement prices.
Yet today my Bitcoin miners are offline and my entire mining operation is dark because the operational costs of my last-generation Avalon 741 miners would see me running at a daily loss which I don’t see as a good short term investment relative to the price predictions for Bitcoin in the near term which nobody can prove let alone put any certainty in. If Bitcoin moves up $1,000 I’ll flip the switch on my current mining operation and be happy to absorb a small daily operational loss in pursuits of what I feel – in my opinion – has a long-term pay off.
I see signs of momentum in terms daily Bitcoin blockchain transactions at or near recent highs. Until a clear path forward can be identified we advocate Bitcoin investors to avoid the Bitcoin Neutral Zone and avoid investing in Bitcoin – while being ready and able to at a moment’s notice – as soon as market signs point to a sustained upward trend.