The big debate is whether you are Team Gold or Team Bitcoin. A lot of the Bitcoin and Crypto enthusiasts believe Bitcoin is a safe haven and is the digital gold. There are times it has acted alongside Gold as a safe haven, but more times than naught, Bitcoin does NOT follow Gold and act as a safe haven. Regardless, I think we can all agree that is not fiat which means it is a good idea to own both. For more detailed discussion on Gold and Bitcoin, you can check out my earlier work.
So I have observed something recently. Usually in the crypto space, we see Bitcoin move and then alt coins move alongside. However, I have seen Ripple and Stellar moving first and then Bitcoin following along. I mention Ripple and Stellar because those are the coins I follow, so perhaps other alt coins have been doing this that I am not aware of.
Anyways, yesterday both Ripple and Stellar had big moves. Stellar is setting up nicely once again, but that large breakout alludes us. I will post this chart when we get back to that zone.
Bitcoin here is making a nice coiling pattern. It is still within a large range, so in terms of a downtrend, it is not what I generally like to see. I tend to prefer the lower highs and lows being much more clear. Here, the move from 10000 to 8900 did not occur with clean swings. And as mentioned, just seems to be in a larger range.
However, we can perhaps play this range break here. 9370 has been the neckline I have been watching in a some what ugly head and shoulders pattern. Not textbook, but the important thing is a head and shoulder shows a shift from lower highs to higher lows. We got that confirmation of a higher low with the break out above 9370. Price has now retraced to retest this zone and is currently doing so.
Two ways of entry which is known among my followers. Either enter now with a better risk vs reward but a lower probability of success. OR await until we make new recent higher highs, a close above 9473, which actually CONFIRMS the retest and the higher low. Your risk vs reward may take a hit, but the probability of success is much greater. Trading all in all is a business of probabilities.
Let's see if we begin an uptrend here, which is valid as long as we remain above this break out zone and the higher low at 9230. The 10,000 zone would be an obvious target.
By the way, the Ethereum daily chart looks like it wants to breakout too but if it doesn't, then it will remain in a range with a downside break still possible:
So let's see. It does not appear Bitcoin will move like Gold, because I believe the move in Gold is due to large funds moving in. Gold is the best currency at a time when every central bank is trying to devalue their currency, is cutting rates, and printing large amounts of money. Gold is also going to be the next bonds in terms of a safety play. Bond yields are almost nothing, but Gold can move 3% or more in a month.
Finally, large funds would not move into the crypto space because they are not regulated. Meaning there is no depositer insurance. If Bitcoin did hit 100,000 or more, many of these brokerages would not have the money to pay out. They don't need to because they are not regulated. I have made a case before that regulations would make cryptos boom...but then it defeats their original purpose of being decentralized.
The reason I remain bullish on cryptos though is because it is NOT fiat currency. Anything away from fiat is great, although I do prefer hard assets much more.
So I have observed something recently. Usually in the crypto space, we see Bitcoin move and then alt coins move alongside. However, I have seen Ripple and Stellar moving first and then Bitcoin following along. I mention Ripple and Stellar because those are the coins I follow, so perhaps other alt coins have been doing this that I am not aware of.
Anyways, yesterday both Ripple and Stellar had big moves. Stellar is setting up nicely once again, but that large breakout alludes us. I will post this chart when we get back to that zone.
Bitcoin here is making a nice coiling pattern. It is still within a large range, so in terms of a downtrend, it is not what I generally like to see. I tend to prefer the lower highs and lows being much more clear. Here, the move from 10000 to 8900 did not occur with clean swings. And as mentioned, just seems to be in a larger range.
However, we can perhaps play this range break here. 9370 has been the neckline I have been watching in a some what ugly head and shoulders pattern. Not textbook, but the important thing is a head and shoulder shows a shift from lower highs to higher lows. We got that confirmation of a higher low with the break out above 9370. Price has now retraced to retest this zone and is currently doing so.
Two ways of entry which is known among my followers. Either enter now with a better risk vs reward but a lower probability of success. OR await until we make new recent higher highs, a close above 9473, which actually CONFIRMS the retest and the higher low. Your risk vs reward may take a hit, but the probability of success is much greater. Trading all in all is a business of probabilities.
Let's see if we begin an uptrend here, which is valid as long as we remain above this break out zone and the higher low at 9230. The 10,000 zone would be an obvious target.
By the way, the Ethereum daily chart looks like it wants to breakout too but if it doesn't, then it will remain in a range with a downside break still possible:
So let's see. It does not appear Bitcoin will move like Gold, because I believe the move in Gold is due to large funds moving in. Gold is the best currency at a time when every central bank is trying to devalue their currency, is cutting rates, and printing large amounts of money. Gold is also going to be the next bonds in terms of a safety play. Bond yields are almost nothing, but Gold can move 3% or more in a month.
Finally, large funds would not move into the crypto space because they are not regulated. Meaning there is no depositer insurance. If Bitcoin did hit 100,000 or more, many of these brokerages would not have the money to pay out. They don't need to because they are not regulated. I have made a case before that regulations would make cryptos boom...but then it defeats their original purpose of being decentralized.
The reason I remain bullish on cryptos though is because it is NOT fiat currency. Anything away from fiat is great, although I do prefer hard assets much more.