The Driving Force Behind Bitcoin

It’s all over if these holders give up. [Jeff Clark's Market Minute]( The Driving Force Behind Bitcoin By Eric Shamilov, Contributing Editor, Market Minute Bitcoin’s recent plunge to $30,000 was fast and furious… But, that shouldn’t have surprised anyone. While some people consider bitcoin to be the new gold, it’s still mostly driven by momentum. That means buyers are willing to keep buying, even as the price goes higher. And when it loses that momentum – for whatever reason – the price goes in the opposite direction, and fast. Jeff warned about this lightning-fast crash [a little over a week ago]( Bitcoin will trade at $30,000 before it ever trades at $100,000. That’s an unpopular opinion. Just about everybody is [bullish]( on bitcoin. Folks with a lot more money than me are calling for the “King of Cryptos” to hit $100,000 by the end of the year. And, that may indeed happen. I just think it’s going to get whacked down to $30,000 first. Recommended Link [Wall Street Legend Who Picked Bitcoin in 2016 Shares #1 Pick for the 2020s…]( [image]( Picking the right “investment of the decade” can transform your life… Microsoft in the ‘80s… Amazon in the ‘90s… Apple in the 2000s… Bitcoin in 2016… Any one of these could have made you a millionaire many times over. Starting with very little. Today, the Wall Street legend who picked the last “investment of the decade”… months (even years) before his peers… will finally reveal his new #1 pick for the 2020s. It’s not 5G, artificial intelligence, EVs, or clean energy. The answer will surprise you. And for those who take early action, it could lead to [a massive potential payout](. [See #1 Pick]( -- It was a timely prediction. So, how did Jeff know it was coming? He used a simple, yet effective technique to identify a potential point in the market where the momentum could end. But Jeff saw other clues to suggest that the bitcoin price would fall. That’s because he also uses a fundamental approach: You see, just as oil stocks tend to lead the price of oil, and gold stocks lead the price of gold, it seems to me the bitcoin stocks are likely to lead the price of bitcoin. And, bitcoin stocks have been hammered. But that’s in the past. So, what happens next? The Real Driving Force Behind Bitcoin To answer that, we should look at what actually drives bitcoin’s momentum. Some people say that pop culture or news headlines drive the momentum... Maybe in the short term. The real driving force behind the momentum are the “bitcoin whales”… Whales are big holders of bitcoin. So if they give up on it… It’s all over. With that, it pays to watch what they do. So, how do you know when the whales are influencing the market? Free Trading Resources Have you checked out Jeff's free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. You see, for the most part, big bitcoin investors use Coinbase as the exchange to execute their trades. Small investors use exchanges like Binance. Bitcoin trades at different prices on different exchanges. As the website, cryptoquant.com explains, “The higher the [premium]( means Coinbase whales accumulate Bitcoin despite the high price." Meaning, when bitcoin is more expensive on Coinbase, it could be a sign that the “whales” are buying. The reverse is true when it trades at a discount. The chart below shows how this relationship has played out… [(Click here to expand image)]( I created an index that tracks the premium of bitcoin on Coinbase vs. Binance. The index measures the daily accumulation of the difference between these two prices. You can tell when the “whales” are buying because the premium increases (black line), and at the same time the bitcoin price (green line) also rises. When the premium and bitcoin price both fall, it means the “whales” aren’t buying. And when these lines diverge, eventually bitcoin’s price follows. This was a big warning sign when bitcoin hit $40,000 for the first time. Although the price went up, it wasn’t accompanied by a spike in the Coinbase price premium. [This one stock could be the game changer you’re looking for]( At $65,000, it was even more questionable. To me, it’s a sign of smaller investors getting drawn in by headline hype. Importantly, the interesting thing is to see what has happened after this recent fall. Because as the price has collapsed, the Coinbase premium kept rising, signaling that the “whales” bought this big drop. So, I don’t see bitcoin trading below $30,000 for quite a while. It could oscillate within the $30,000-$47,000 range for a while, before potentially getting to around $80,000-$100,000. The recent spike in the premium between Coinbase and Binance looks like it may lead to a new round of momentum… And bitcoin needs momentum. Regards, Eric Shamilov Contributing Editor, Market Minute Reader Mailbag In today’s mailbag, Jeff Clark Alliance member Harvey shares his experience at almost 90 using Jeff’s various services… I became an Alliance life member after success with Jeff Clark Trader. It’s like Jeff has been teaching me how to fish. I look to each trading day for the wise counsel and nuances provided by Jeff. The Mastermind course got me going to financial independence and none too late since next month I'll be turning 90 years old. I appreciate your service and the blood and sweat poured in. – Harvey Thank you, as always, for your thoughtful comments. We look forward to reading them every day. Keep them coming – and send us any questions – at feedback@jeffclarktrader.com. In Case You Missed It… [Shameful! See What Biden and the Democrats Just Did To YOUR Money]( The U.S. House of Representatives voted to let the IMF circulate what could be a new elite-controlled reserve currency. Its exchange rate could effectively devalue the U.S. dollars in your pocket and your savings. It’s all part of a disturbing agenda called the “Great Reset,” endorsed by the likes of Alexandria Ocasio-Cortez and radical liberals, under the guise of “equality.” How can you protect your money and all you’ve worked for from this reset? [See this briefing on what to do next.]( [image]( Get Instant Access Click to read these free reports and automatically sign up for daily research. 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