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The much-feared Death Cross is here!
If you look at the Bitcoin price evolution on a 1D-timeframe, you will see that this Death Cross has just formed:
A Death Cross is when the 50-day moving average of the Bitcoin price crosses the 200-day moving average downwards. Investors fear Death Crosses because it is usually a signal that the market is turning Bearish.
However, there is no hard and fast rule as I explained in detail here:
Of the 8 Death Crosses in Bitcoin history, 4 resulted in a drop in the Bitcoin price in the following months, while the other 4 resulted in a significant rise in the Bitcoin price. So it's 50/50. No hard and fast rule, and no reason to panic.
If you recall, the last Death Cross took place in the early summer of 2021, and you know what happened next with the price of Bitcoin reaching a new ATH in November 2021 close to $70K.
While we wait to see what the price of Bitcoin has in store for us in the coming days and weeks, I'd like to draw your attention again to what I've been telling you for some time now: famous hedge fund managers continue to be Bullish on Bitcoin over the long term.
Bill Miller became famous in the 1990s for beating the S&P 500 index for a record 15 years in a row from 1991 to 2005 as a fund manager at Legg Mason. Bill Miller had already revealed in the past that he was a huge believer in the future of Bitcoin. He started buying it as early as 2014 when its price was then $200. It was a talk by Wences Casares, known as Bitcoin's “Patient Zero” for introducing Bitcoin to Silicon Valley circles in the mid-2010s, that convinced him.
Calling himself a “Bitcoin observer” until now, Bill Miller has just revealed that he has now moved into the “Bitcoin Bull” category with no less than 50% of his personal wealth in Bitcoin. Make that count. One of Wall Street's most famous hedge fund managers believes so strongly in the future success of Bitcoin that he can hold half of his fortune safely within the Bitcoin network.
This is no small thing, and it confirms that those who have a long-term view and can be patient continue to accumulate Bitcoin heavily.
Bill Miller believes that Bitcoin is a unique investment that everyone should allocate at least 1% of their portfolio to:
“I think the average investor should ask himself or herself, what do you have in your portfolio that has that kind of track record – number one, is very, very under-penetrated; can provide a service of insurance against a financial catastrophe that no one else can provide and can go up 10 times or 50 times? The answer is: nothing.”
In addition to his direct Bitcoin holdings, Bill Miller also invests in companies that give him indirect exposure to Bitcoin. For example, he revealed investments in mining company Stronghold Digital (SDIG) and MicroStrategy, which has adopted an all-in Bitcoin strategy in the wake of its founder and CEO Michael J. Saylor.
Taking a step back is essential to taking full advantage of Bitcoin. Even if you don't have the same resources as Bill Miller, you need to be able to think long-term in the same way.
If you can make this time paradigm shift with Bitcoin, you will realize that your interest is in focusing only on the number of BTC you hold. Rather than constantly looking at the price of Bitcoin in weak money like the US dollar (or the Euro), look at your balance in BTC.
The only number that matters now is the number of BTC you hold. The potential for growth in Bitcoin's utility is such that we are currently in the midst of an accumulation game. The more BTC you have accumulated for your future, the better it will be for you.
In the future, you can always think about selling your Bitcoin, but not for at least 10 years...
