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With bitcoin gathering strength above $30,000 another strong move to the upside could be on the way.
A safe haven - but do people know it?
Having taken all that could be thrown at it by government and financial agencies, bitcoin appears to be doing exactly what it was built for, and that is providing a safe haven for the peoples’ wealth outside of a fast-crumbling fiat financial system.
The real shame of the matter is that a lot of the mud that has been frantically slung at the crypto sector by mainstream media on behalf of the banks has undeniably stuck, with the vast majority of people not feeling that they can trust one of the only life rafts available to them.
However, if bitcoin can continue its current strong trend to the upside the mainstream media will find it increasingly difficult to ignore and will be able to manufacture less reasons to stop the average retail investor from buying it - as long as the SEC hasn’t destroyed all the on/off ramps from the banks.
Momentum about to pick up
Momentum indicators are starting to go bitcoin’s way. The huge pump in price from $24,800 to around $31,400 wasn’t something that could be sustained, and bitcoin has had to go downwards and sideways for the last few days in order for the RSIs (momentum indicators) to reset.
This has happened for both the shorter term 4-hourly and 8-hourly, and the 12 hourly is on the way down. Looking out at the long term weekly timeframe things do look good for bitcoin given that the weekly Stochastic RSI has crossed upwards and has pierced through the 20 level signalling strong upwards momentum.
Continuing with this more macro outlook, closing a weekly candle above the $30,000 price level was an extremely bullish action for bitcoin. It could certainly be argued that this is the all-important level for it to get above since it has been support and resistance since early 2021.
Last week’s candle was also the first to break out of the weekly Gaussian Channel since it was entered for the first time in July of 2021. Once a bull run starts in earnest the price never goes back inside this channel.
Even though many commentators and analysts might be calling for well over $100,000 for this cycle it would be good to look into the reducing highs over time for bitcoin. This would point towards a high of around $100,000, much less than many are predicting.
Be that as it may, a 3x from here amid the carnage of bank failures and a collapsing economy is not such a bad return.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.