A new era has begun with Bitcoin’s $ 12,000 breakout – opinion

A new era has begun with Bitcoin’s $ 12,000 breakout – opinion



A new era has begun with Bitcoin’s $ 12,000 breakout – opinion

  • Bitcoin settled above important technical resistance

  • Analysts compare the current situation with the Great Depression

  • Technical indicators point to continued bullish potential

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A rally in the stock market helped bitcoin overcome the upper border of the channel and mark a new annual high of $ 12,437. The first cryptocurrency is again promised a bright future as a protection against inflation.

A new era has begun with Bitcoin's $ 12,000 breakout - opinion

At the time of this writing, one bitcoin can be bought for $ 12,250. BTC / USD has corrected from recent highs, but managed to gain a foothold above the key $ 12,000 level, which for more than a week served as the upper border of the channel and strong resistance. Despite the correction, BTC is still in the green on a daily basis, with more than 92% of coin holders bought it at a price lower than the current one.

The market capitalization of the first cryptocurrency exceeded $ 226 billion, but the dominance index firmly settled under the 60% mark. This is due to the fact that many large altcoins have also shown explosive growth. In particular, TRON (TRX) NEM and Aave gained more than 11% per day, and the Bloomberg Galaxy Crypto Index calculated by Bloomberg reached its highest value since June 2019..

Bitcoin entered the gold league

After a lengthy consolidation in the range, Bitcoin seems to have found sustained bullish momentum. According to experts, the combination of the storming historical heights S&The P 500 and the ultra-low rates of global central banks will be the main driver for the digital coin in the near future. Under these conditions, Bitcoin will play the role of an inflation hedging tool and will strengthen in the face of any signs of price increases..

A new era has begun with Bitcoin's $ 12,000 breakout - opinion

“Today’s situation can be compared to the Great Depression,” said Nicholas Pelechanos, head of trade at NEM. “In the years following the crisis, gold prices more than doubled amid rapidly rising inflation. Such a macroeconomic alignment makes bitcoin attractive to investors “.

A similar view is expressed by Seamus Donoghue, VP of Sales and Business Development at METACO. He believes that negative real returns, coupled with stimulus measures and increased spending by governments and central banks, are pushing investors to seek inflation protection..

“Traditionally, gold has been such a refuge,” explains the expert. “Given the limited supply and growing institutional acceptance, Bitcoin is also likely to benefit in this situation as well.”.

Note that some Wall Street regulars have already become interested in the coin and transferred part of their investments to a new asset. for instance, Paul Tudor Jones said he bought bitcoin when central banks turned on the printing press, and the founder of Galaxy Digital Holdings noted in a recent interview with Bloomberg Television that about 25% of his fortune is stored in cryptocurrencies.

Technology gives bulls the green light

Bitcoin’s rise above $ 12,000 has made it one of the most profitable assets this year. Since the end of September, the coin has risen in price by 70%, and from the lows of mid-March – by more than 100%.

Technical indicators paint a rosy picture for BTC / USD: the price has moved beyond the upper border of the Bollinger Band on the daily chart. Such a breakout is usually a harbinger of a downward correction, but technical analysts point out that this time the situation may develop in a different scenario. The Relative Strength Index (RSI) is in a neutral position. This means that the coin is not overbought and retains upside potential..

Detailed technical analysis Investing in and trading in cryptocurrencies is impossible without the use of technical and fundamental analysis. Despite the popularity of both of these tools, intraday … Read more bitcoin in our article and subscribe to the telegram channel for traders.

A new era has begun with Bitcoin's $ 12,000 breakout - opinion

BTC / USD chart. Source TradingView


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