BITCOIN long breakout possible if this current trend holds!
There is a potential long breakout possible on bitcoin if this current trend holds and higher highs are made to break the near term fib resistance. A break of 10k is not enough to send bitcoin surging. A higher-high is needed and we will need a run to break 12k~ in order to make real gains. On the other end of the spectrum, we can see support levels at 8.7k~, and 7.9k~ and if both of these levels are broken down, we will have a few weeks/months before a real uptrend begins.
With the halving that just took place, if past trends continue, we should see a long breakout within 3 to 6 months. According to passed halvings, we should see a slight dip after the initial miners that can't stay on anymore begin to turn off. Some people believe the halving price was already factored into the current price of bitcoin. There is a lot more money in the system right now with every country printing money to help stabilize the economy. There are also many more people that are paying attention to bitcoin then there ever have been before in the past. This could be a potential moon landing for bitcoin but it also can really hurt it at the same time. People having the option to short bitcoin was one of the biggest contributors to the last bitcoin fall from 20k. There are a lot of whales in the game on standby and we are just fish in their ocean. If we do see a huge surge in bitcoin, there may be whales that will attempt to dump their bitcoin, which will cause major pullbacks during the rise. These pullbacks, if large enough could ignite a bear market for Bitcoin. If those dumps started happening now, I don't know if bitcoin will be able to recover for a long time.
In regards to COVID-19, we have noticed that as usual, when the market takes a downturn, people invest in gold as a safe haven for their money. As a result, gold has surged. There is the possibility that bitcoin can fall due to COVID uncertainty and market instability. There is also the possibility that people may finally start investing in digital gold as a safe haven, but not enough government regulation scares investors from getting involved. The recent surge we have seen in bitcoin could be the same reason we have seen a surge in gold, but it also could be a result of speculation with the halving. Only time will tell.
I am long on bitcoin because of the trends that are displayed in the chart and the real world. It is not a matter of why we need bitcoin and crypto, we know we need it. The market is not big enough yet. We are still just at the start of the race. I consider bitcoin digital gold and unlike the rest of the world, bitcoin has a set inflation rate and supply. Since we are still at the start though, it is possible for whales to influence the direction of the market, hence why I am giving the potential for both directions of bitcoin to ensue. The trends and indicators point up, but we will have to see what institutional investors think about the market.
With the halving that just took place, if past trends continue, we should see a long breakout within 3 to 6 months. According to passed halvings, we should see a slight dip after the initial miners that can't stay on anymore begin to turn off. Some people believe the halving price was already factored into the current price of bitcoin. There is a lot more money in the system right now with every country printing money to help stabilize the economy. There are also many more people that are paying attention to bitcoin then there ever have been before in the past. This could be a potential moon landing for bitcoin but it also can really hurt it at the same time. People having the option to short bitcoin was one of the biggest contributors to the last bitcoin fall from 20k. There are a lot of whales in the game on standby and we are just fish in their ocean. If we do see a huge surge in bitcoin, there may be whales that will attempt to dump their bitcoin, which will cause major pullbacks during the rise. These pullbacks, if large enough could ignite a bear market for Bitcoin. If those dumps started happening now, I don't know if bitcoin will be able to recover for a long time.
In regards to COVID-19, we have noticed that as usual, when the market takes a downturn, people invest in gold as a safe haven for their money. As a result, gold has surged. There is the possibility that bitcoin can fall due to COVID uncertainty and market instability. There is also the possibility that people may finally start investing in digital gold as a safe haven, but not enough government regulation scares investors from getting involved. The recent surge we have seen in bitcoin could be the same reason we have seen a surge in gold, but it also could be a result of speculation with the halving. Only time will tell.
I am long on bitcoin because of the trends that are displayed in the chart and the real world. It is not a matter of why we need bitcoin and crypto, we know we need it. The market is not big enough yet. We are still just at the start of the race. I consider bitcoin digital gold and unlike the rest of the world, bitcoin has a set inflation rate and supply. Since we are still at the start though, it is possible for whales to influence the direction of the market, hence why I am giving the potential for both directions of bitcoin to ensue. The trends and indicators point up, but we will have to see what institutional investors think about the market.
