Money running into Bitcoin. Is it institutional money frontrunning the digital currency which means government can tax and track all money? Or is this a move out of fiat money? My followers know my opinion, this move is what I have been predicting since last year. The currency war is in full affect, as central banks attempt to weaken their currencies for inflation and to cheapen the debt after so much money printing due to covid.
Bitcoin broke into all time record highs, and the question is whether the momentum continues. Technically, the 20k zone now becomes new support. Price is very likely to pullback there in order to retest. From there, we shall see if the uptrend continues.
The big question is whether Bitcoin momentum continues longer before we pullback.
This is where technicals can come in play. Two things here.
Firstly, I drew a fibonacci on the weekly chart. My first target comes in at 24644 zone.
Secondly, a multi touch trendline. This trendline has 5 touches (nearly 6). Well, 6 if you do include the recent touch here. Remember for a trendline, we like to see at least 3 touches for it to be established as a strong technical tool. Price is hitting this zone currently and we are seeing some sellers. The weekly candle close is important.
So we have two resistance confluence points here. But the momentum can carry Bitcoin forward as traders and speculators chase. What we will do is watch the daily and the 4 hour chart for some sort of consolidation. This would tell us that Bitcoin is failing to make a new higher low, indicating the bulls are losing steam. Ideally, a reversal pattern is what we would like.
Be patient, wait for some more price action before deciding. I still think you want to own non fiat assets going forward so long term bullish on Bitcoin, Gold, Silver etc.