January Price Action
Can bitcoin’s bullish start to 2023 continue...
January Price Action
It’s fun to talk price action.
Bitcoin is off to a hot start so far in 2023 but we’re still in the middle of the market cycle. Currently, bitcoin is about a year and a half from the halving.
What’s the bitcoin halving?
I broke down the basics around the halving last week. You can read that post to learn what it is and what it means for bitcoin.
The entire crypto industry is still digging itself out of the massive carnage that Terra, 3AC, Celsius, Voyager, BlockFi, FTX, and Genesis left in their wake.
Did I forget anyone?
When FTX unwound in early November 2022, markets tumbled. Bitcoin had steadied prior to the FTX collapse. It was trading within a tight range in the low $20,000s since early June. Then, it dropped about 25% in a matter of days.
The silver linings to FTX:
the “inverse Sam” chart
Bitcoin filled the “inverse Sam” price gap and is back at the low $20,000s. It even spiked as high as $23,500 on January 21st.
As we wait to see where bitcoin goes from here, little has changed when it comes to my bitcoin strategy. 100% of my bitcoin remains in self-custody.
It’s when you hold your bitcoin yourself, in your own wallet, not on an exchange or other type of centralized platform that can fail at a moment’s notice.
You can learn more about the differences between self-custody bitcoin wallets and exchanges in my post: Holding Bitcoin Off Exchanges
Every year, I also do a full review of my bitcoin wallets. I take out the documents with all of my self-custody passcodes and wallets that I keep in secure places, sit down, open each wallet, decide if I need to consolidate any wallets or change what’s stored where, and just do an overall self-assessment of my storage strategy.
I did that last week.
And next week…
I’m going to convert a chunk of my ethereum holdings to bitcoin and move that new bitcoin to one of my cold storage wallets.
I’ll tell you more about that in the next monthly report so be sure to subscribe if you want to read that and dive deeper into the nuances of bitcoin wallets.
In the meantime, do your own self-assessment when it comes to bitcoin. In the same way you would do traditional financial checkups or New Year’s evaluations of your goals and lifestyle, you can do the same thing for your bitcoin.
It’s the perfect time to double check that your bitcoin is secure or set goals to learn more in the year ahead and develop a stronger understanding of bitcoin.
Get your hands on a self-custody wallet.
One step at a time.
Make progress in 2023.
Thanks for being a loyal reader!
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I am not an investment or financial advisor. All opinions expressed are mine alone. Read the full DISCLAIMER on the About page.
HODL on Garth.