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Bitcoin breaches $30,000 in the face of the SEC’s harsh treatment of the crypto sector. Could this be the start of a rally to $45,000?
Bitcoin defies the odds
Bitcoin is unstoppable. It’s a rocket ship; a turbo-charged dynamo; an asset that can save anyone who has the nouse to climb onboard. The SEC and the US government can do what they may but bitcoin is sound money, something all fiat currencies completely lack.
The king of the cryptocurrencies is saying no to censorship, no to being taken down, and no to the madness of central banks and their attempt to gain full control over the citizenry with the eventual imposition of central bank digital currencies (CBDCs).
Over the last couple of days bitcoin has proved the doubters wrong, and not only that, it has given the powers that be plenty to think about. SEC chairman Gary Gensler must have thought that he had put the stopper back into the bottle when he unleashed his attacks on the top crypto exchanges, but bitcoin has other ideas. Blackrock, Fidelity, and others' entry into the crypto space might also have something to do with it.
Of course, this particular pump may now be rejected from the $30,000 resistance. It will need some power behind it indeed if it is to somehow blast its way through. However, bitcoin has a history of doing the unexpected, and now the calvary, in the form of the big institutions, looks as though it is arriving and who knows now what might happen.
The next step for bitcoin, if it can maintain the momentum, is to make a new local high of around $31,000, which will surpass the one made in mid-April. From there it will be a case of also making a higher low than $24,800, although it might be hoped that $27,000 or even $30,000 can be the new support.
So far infallible signal indicates upside
One little known indicator in bitcoin’s favour is the NVT & HV Combo. This indicator flashed today as the signal line crossed the 40 level and maintained its green colour on the 5-day and the weekly time frames. Green means that price should continue to the upside, while red would signal the opposite. This particular indicator has flashed only 7 times previously since 2017 without any false signals. Today’s signal is the eighth time, and many will hope that this signal is a particularly fruitful one. $45,000 beckons.
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.