Bitcoin (BTC) is about to complete a massive inverse head and shoulders pattern. This means that the price is expected to breakout as early as next week. The potential for upside is as high and so is the probability of a rally from current levels. For the past few months, Bitcoin (BTC) has been reacting to the price action on EUR/USD. The IH&S that we see on the BTC/USD 4H chart is also a consequence of that reaction. We are only seeing this pattern form on BTC/USD because EUR/USD is doing the same thing. Now, the EUR/USD has been long due for a reversal which is likely to happen this month. As EUR/USD goes up, the Dollar goes down which means the price of Bitcoin (BTC) goes up in dollar value.
If we were to fully comprehend the risks surrounding the US Dollar at this point, it would seem silly to be measuring the worth of Bitcoin (BTC) in dollars. In fact, it would make a lot more sense measuring the worth of Bitcoin (BTC) in Gold or Silver instead of the US Dollar. Even the Euro would seem to be a better alternative for the time being considering the risks facing the Dollar. That being said, this is not going to change anytime soon and people are going to continue to measure the value of Bitcoin (BTC) in dollars. It climbed to almost $20,000, now it is back around $4,000, in a few years from now it might be close to $100,000. Then it may rise to $1 million per Bitcoin (BTC) for all we know but the thing is, these valuations would mean something different by then.
The EUR/USD 4H chart shows the exact same IH&S pattern that Bitcoin (BTC) and most cryptocurrencies are forming right now. When this completes, we are likely to see a major breakout. In the past few years, we have seen a whole new market emerge thanks to Bitcoin (BTC). This market will see a lot of promising projects secure funding to solve real world problems and challenges. However, it will also attract people who will challenge Bitcoin (BTC) as the one true universally accepted digital money. As we can see, that is already happening. We have Bitcoin Cash (BCH), Litecoin (LTC), Bitcoin SV and a ton of other cryptocurrencies claiming to be better than Bitcoin (BTC). Then we have these terms like Bitcoin (BTC) maximalists and minimalists. In my opinion there is no such thing as Bitcoin (BTC) maximalists or minimalists.
Anyone who believes that something like Bitcoin Cash or Litecoin has a shot at becoming legal tender is either kidding themselves or fooling someone. The sole purpose Bitcoin (BTC) was created was to solve the double spending problem. If we have a ton of sh*tcoins that can be used as legal tender, then Bitcoin (BTC) makes no sense. Bitcoin (BTC) was not created to digitize currencies or to make payments faster or cheaper. Those were all byproducts and if there were a better way to create something like Bitcoin (BTC) without using the blockchain, then we would be using that for the purpose we are using Bitcoin (BTC) today. Bitcoin (BTC) fell all the way from $18,000 to $3,400, but this is not the first time it has happened and it won’t be the last. Short term, the price could go up, down or sideways in terms of dollar value, but in a few years from now none of that is going to matter.