Bitcoin behaviors in a nutshell

As you found out in previous articles (see them here: The Newest Bitcoin User Manual), Bitcoin shows the signs typical for a market bubble. It didn't do it once but few times already and every single “micro-bubble” was located on the chart higher then previous one. If we can see the price is still growing and the repeating bubble pattern is being formed, can we actually call this pattern a bubble? Maybe better name for it would be a “correction”? If so, can Bitcoin be a bubble? Time will show, but I doubt it is. For this to happen, Bitcoin price has to break Hell Line down significantly and go almost to zero. Adoption of every new groundbreaking technology is turbulent and growths exponentially. It stabilizes only after some time.

As we know from the observation of various markets, trends can last for many years. Why wouldn't it be the same for Bitcoin? The main upward trend (Hell Line) and main channel (Moon Channel) were identified here as an important signpost for Bitcoin investors. Of course it may change anytime and then you will know that some other signpost has to be found. But till that day you can follow this path and be aware of possible change in the future (maybe tomorrow, in a month or in many years).

To help identify the levels where price may bounce off, main support and resistance lines were indicated here (summer lines and winter lines). Depending on the direction of the market the same line can be a resistance one day and a support the other. Each investor can use them to take a market position accordingly.

It is amazing that in real life we have 4 seasons and BTC tends to have them, too. The phrases comparing the price behavior to the seasons (e.g. “crypto winter”, “crypto spring”) were a bit “fuzzy” so the main periods were specified here to sort out the topic. Now, if someone says that we are in “crypto summer” (should be in "Bitcoin-summer", actually), it may mean that we are above the previous ATH on BTC chart, the price goes exponentially up very fast (almost vertically) and... the party may be over soon. It is wise to start unloading your stuff into fiat or stablecoins before the masses start blocking the exit. Simply your sales orders may not go through the panicking crowd (there could be much more sales then buy orders, that is no one would like to buy at current price). “Crypto autumn” may mean that the party is already over and now it's time to short your positions. The price is constantly falling like a ball from the hill, sometimes bouncing off the slope. In “crypto winter” it's time to go shopping because the price already found its rock bottom and now goes mostly sideways as not many sellers left. “Crypto spring” is characterized by stable growth between winter line and summer line. It's a time when you can buy Bitcoin and don't have to worry to much about the price drop because even if it happens, it will go up at the end.

Another important Bitcoin feature every crypto investor should take into consideration is that December and January are the most important months in Bitcoin life. It may be a situation (but not always), when in these months Bitcoin summer ends and autumn begins or, in other words, the highest or the lowest local price point is achieved.

Everything written here can be summarize on the picture that “knows it all” (Pic.7). Notice the black vertical markers with dates showing the borders between Dark Age, Stabilization Age and Moon Age.

At the end here is my final thought for Bitcoin long-term investors (not short-term traders). If you want to be a prominent crypto farmer, you need to remember about one crucial thing: In the crypto world you sow Bitcoin during its crypto winter and harvest during its crypto summer. If you do it opposite, you will be starving.

It looks like the hell gates opened for “Bitstampers” only for a very short period of time to suck in last condemned souls of all selling nonbelievers and then were closed forever or at least until the next winter. The Bitstamp Hell Line above looks more credible as a support compared to the line from BLX chart below (Pic.9).