Bitcoin jumped 22% this week. Retail traders who panic-sold at the bottom are now panic-buying at prices they could have paid three weeks ago. The efficiency is breathtaking.
Several contributing factors boosted the flagship digital currency. That's the phrase financial journalists use when they have no f*cking idea why a number went up but need to file 500 words by noon. The coin moved because someone bought it. Revolutionary stuff.
Investor optimism flooded back. Flooded. As if optimism is a liquid that seeps under the door when you're not paying attention. These are the same investors whose pessimism flooded out two weeks ago when Bitcoin dropped 18%. They feel things very intensely. Must be exhausting.
The technical picture here is simple. Bitcoin bounced off support that didn't exist until it did. It broke through resistance that meant nothing until everyone agreed it meant something. The 50-day moving average crossed the 200-day moving average at an angle that would make Pythagoras weep. None of this matters.
Somewhere right now a guy named Derek is explaining to his Hinge date that he got in early this time. He did not get in early. Derek bought at 11:47 PM on Thursday after watching a TikTok from a teenager in Romania. His cost basis is 6% higher than the current price but he's convinced he's basically Warren Buffett if Warren Buffett understood technology.
The flagship digital currency will do exactly what it always does. It will chop sideways for three weeks. It will dump 15% on a Tuesday for no reason. It will rip 30% on a Friday for less reason. And every single time, investors will flood back in or flood back out, depending on which direction makes them feel alive.
Derek's Hinge date ordered a second drink and changed the subject to her job in HR.
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