- Bitcoin (BTC) uptick, adds 16.7 percent
- The entry of Lagarde as ECB chair is bullish for cryptocurrencies
Gold and Bitcoin, according to leading analysts, are certified safe havens. The global economy may end up floundering. However, the entry of Christine Lagarde as the ECB chair is bullish news for cryptocurrencies like Bitcoin. Thus far, BTC is up 16.7 percent week to date.
Bitcoin Price Analysis
The battle for the next generation store of value is a fierce contest between gold and Bitcoin. While the former has a well tabulated history, the latter is an emerging, scarce and community-powered asset.
It is purely digital, and unlike gold with infinite supply, BTC is all about transparency and mathematics. Participants, through a public blockchain, can determine the exact number of BTCs in circulation and even make projections of future emissions. Even so, there are skeptics.
Although both assets are making a comeback with gold breaking from a five-year trade range, surging towards the $2,000 in June 2019, BTC has more potential. However, that is not enough to convince gold supporters, with a superior market cap and liquidity, gold is undoubtedly a trusted asset backed by central banks.
In that case, Jim Rickards of Strategic Intelligence and an author of Currency Wars: The Making of the Next Global Crisis differs from BTC bulls. Saying the world’s most valuable asset is a bubble, he claims:
“It’s clearly a bubble — it looks like the second biggest bubble in history after tulip mania. Although at the rate it’s going it will pass tulip mania, you know, in a matter of days. Name your bubble. It’s bigger than all of them.”
By surpassing expectations, there is an element of resilience as far as BTC is concerned. After weathering and successfully rejecting bearish attempts, BTC is literally on a roll. Snapping back to trend and adding an impressive 4.8 percent and 16.7 percent in the last day and week, buyers are back in contention.
Presently, BTC is changing hands at slightly over $12,400. Therefore, bulls are a pole position to add to their gains. Even though capped inside June 27 trade range, bulls of April through to June may flow back boosting prices. As a result, risk-off traders can buy the dips as long as prices are trending above the middle Bollinger Bands (BB).
Meanwhile, risk-averse traders can wait for conclusive breakouts above $14,000 or June 2019 high before initiating buy positions on dips. Like before, feasible bull targets are at $15,000 and $18,000. On the other hand, sharp liquidation below $9,500 and middle BB cancels this bullish outlook.
It is imperative that BTC buyers reverse June 27 losses. For comprehensive trend continuation, any surge above $14,000 confirming bulls must be with high trade volumes exceeding 82k of June 26.
Chart courtesy of Trading View. Image Courtesy of Shutterstock