After a long time, today I would like to concentrate exclusively on the “mother of all crypto currencies”, the good old Bitcoin (BTC).
This was recently a little “out” and has therefore been written off again by many. But I have made the experience that you should never write off the world’s first crypto currency (born on January 3, 2009).
Or to put it another way: I have read many swan songs on Bitcoin, but it is in very good shape today.
Yes, it’s true, it was even better, the all-time high was dated April 14, 2021 (“coincidentally” the day of the Coinbase IPO). But most investors should be very satisfied with prices currently at just under 50,000 US dollars.
This is all the more true against the background of recent history. The “mother of all cryptocurrencies” was still trading below 30,000 US dollars in January of this year.
It was only thanks to Elon Musk’s announcement that Tesla was investing in Bitcoin and accepting it as a means of payment that the price jumped accordingly. Until Musk then rowed back in May and thus caused a small “crash”.
All in all, we are heading towards a very eventful, but ultimately successful crypto and bitcoin year 2021. In my opinion, it could soon become even more successful.
Because bulls and bears are currently fighting for the “round” mark of 50,000 US dollars. In the short term, this harbors further dangers. But if the cops should prevail …
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Let’s see what I mean in the chart!
Bitcoin (BTC), chart, 1 year (in US dollars)
As you can easily see from this chart image, Bitcoin has now coped well with the “crash” in May and is basically on the up again.
However, the recovery stalled recently, which is by no means unproblematic. Because in order to free up further upside potential, it has to rise above the around 50,000 US dollar mark.
Exactly here, namely between 48,000 and 52,000 US dollars (alternatively: 50,000 US dollars +/- 2,000 US dollars) there is a technical resistance zone. The cops recently managed to get it nibbled on.
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So far, however, they have not been able to eat their way through it. There is thus the latent risk of another short-term setback – in order to make a fresh start.
Chart technique in plain language:
If the Bitcoin manages to break out of 50,000 / 52,000 US dollars, this generates a chart-technical buy signal. It can jerk again by 54,000 US dollars, but in principle the way to the all-time high of just under 65,000 US dollars would then be free. Above 65,000 US dollars, the next price targets would even be 78,000 to 80,000 and later 100,000 US dollars.
However, a setback cannot be ruled out beforehand, which in extreme cases could even lead to the exponential moving average of the past 200 days (EMA200) around 42,000 US dollars.
However, it would only become “bearish” below this mark, especially if the round mark of 40,000 US dollars were to fall afterwards.
Fundamentals clearly speak in favor of rising prices!
The fundamental data, on the other hand, are clearer than the chart and speak clearly in favor of rising prices. Why? Well, not only because El Salvador most recently – as the first country in the world – introduced Bitcoin as the official (second) national currency (“legal tender”). But also because the Blockchain analysts at Glassnode recently identified massive purchases from large investors (“whales”).
The whales buy every setback and then withdraw the acquired coins from the crypto exchanges into their private wallets, which indicates that these should be held (“held”).
Because if you only wanted the quick trade here, you wouldn’t pull it off the crypto exchanges. As a result of this procedure, the Bitcoin stocks on the crypto exchanges are now at a similarly low level as last November of last year (2020).
At that time, however, the Bitcoin was still quoted well below 20,000 US dollars, so it has roughly tripled compared to these rates to date.
I don’t think much of any cross-comparisons, but why shouldn’t it then be able to double this time, with which we would almost see the price target of 100,000 US dollars mentioned in the prospect.
To cut a long story short: At the moment, you should probably buy every setback for Bitcoin, because it seems more dangerous not to own it in the event of a price rally.
However, a setback, even to 42,000 US dollars, must still be considered possible.
This brand would therefore be the optimal purchase level. If you buy at higher prices, you should be careful that such a setback does not cause you to be thrown out of your position (for example, via a stop price).
With this in mind, I wish you, dear readers, a nice and relaxing weekend!
Yours Sascha Huber
Financial trends columnist
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