If there’s one thing that’s so fun to do is to look at all the Technical Analysis that traders do when it comes to whether price is going up or down.

Really it’s a lot like the Zodiac and all the signs people talk about.

Does it really mean anything at all? I mean not really, I don’t think so at least.

BUT a pattern is a pattern and it would be foolish to ignore those.

60% of Bitcoin ETF’s Holders Are Down

Of course this is when the doom and gloomers against Bitcoin make their way out of the woodwork and do a nice little “I told you so” happy dance.

Jokes on them because the chart below shows why following that belief system has only cost those people money.

So this looks at the on chain wallets that are in a loss over the lifetime of Bitcoin.

Notice anything?

Around 2020 is the last time Bitcoin wallets were over 60% in loss and then that’s when people started buying back in again and the price of Bitcoin started to rise and folks went into profit.

And the pattern so far has been that each time there’s a dip in price, the amount of long term holders increases and eventually lessens the amount of people who have wallet addresses in a loss.

Now those on chain folks are probably much more likely to be true believers than the ETF holders.

But ETF holders tend to be more long term investors as well so any dip like this has tended to produce profits over the long term.

It’s easy, just do the opposite of what most of the other people are doing.

Which is fine and dandy in theory but in reality it’s like riding a unicycle with a square wheel — possible but damn hard to get through mentally for a lot of folks.

But as this new cohort forget that they even had Bitcoin in their portfolios or are just willing to let the “loss” be down for a while as price starts to rebound, this also creates a new baseline for buyers and holders for Bitcoin.

When the market has been topsy turvy and going up and down and the market gets despondent this is around the time where I like to what the builders are doing.

So this week Blockstream just rolled out a bridge between Lightning which is basically a way that makes Bitcoin payments faster and cheaper and Liquid which is a sidechain to crypto.

Okay, that’s a lot of jargon.

Liquid is like a toll road for Bitcoin transactions, if that toll road was faster and cheaper than the main road. Also while the Bitcoin main network shows every transaction, a sidechain like Liquid can offer more privacy than the Bitcoin network.

Lightning works sort of how if you and your friends go out to eat and only one of you puts down your credit card (for the points, obviously). All the transactions happen between you and your friends but only one time between you and the restaurant.

”So why is this integration being shipped important?“

Because it improves the User Experience for people who want more speed and privacy out of Bitcoin, helps to strengthen the network by providing more use cases and allows for a more robust Bitcoin economy.

And that’s the thing you have to remember about Bitcoin is that it’s not just an economic experiment to a certain contingent of people.

Bitcoin is more akin to religion in a way that true believers would work on improving Bitcoin if the price dropped down to $1 tomorrow.

They don’t care what price Bitcoin is, they’re always going to buy it.

They’re the foundation and the baseline for building the $1 Million Dollar Bitcoin. (Source: Coindesk)

That’s all for today!