Is bitcoin about to make its next move upwards?

Is bitcoin about to make its next move upwards?

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After hitting a local high at over $31,000, bitcoin looks to be regrouping ready for another leg higher.

That bitcoin has broken out and that a strong uptrend is forming is not in much doubt. The higher high has been made and bitcoin is currently buoyed up by the strong horizontal support at $30,300.

If what is happening with the traditional monetary system is taken into account bitcoin would appear to be a complete no-brainer as a means of moving wealth out of the system and into bitcoin where it cannot be manipulated, more of it cannot be printed, and where it cannot be confiscated.

More currency will be printed

The mainstream narrative of whether the Federal Reserve will or will not pivot into quantitative easing and start printing more currency is not really here nor there, at least in the long term. That it will print more currency is an absolute certainty given the economics of a debt-based system.

How will bitcoin bear up?

However, many economic commentators are of the opinion that bitcoin will suffer greatly as liquidity becomes more scarce and a descent into what could be a dreadful recession provokes a massive sell-off in risk assets.

Bitcoin has never had to deal with such an environment in all of its lifetime so far, so it is going to be extremely interesting to see how it will bear up among other financial assets.

It must be said that it was built for exactly this. When Satoshi Nakamoto launched bitcoin the Genesis block bore the text:

Chancellor on brink of second bailout for banks

This was a reference to the Times newspaper of January 3 2009, when the Great Recession was in full swing and the world was on the brink of economic catastrophe.

Satoshi Nakamoto realised that people would need a lifeline to get them out of constant debasement of the currency and an ever-increasing chance of complete economic meltdown.

Bitcoin is due to start its bull market and with its halving coming in April next year it does look like an incredibly good bet. On the other hand, if one holds fiat currency its inherent debasement is an absolute certainty. Education oneself on these matters is the only way to be able to survive what is coming.

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.

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