Bitcoin is finished? Think again

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Bitcoins are considered risky investments, and given the tensions between nations that could lead to war, it’s possible that the sale of bitcoins may persist. However, unlike traditional assets, bitcoins exist beyond the monetary system and are not subject to government control. As such, they represent a form of financial freedom.

War and finance

Tensions are escalating once again in the Middle East, drawing global attention away from the Russia-Ukraine conflict. Major powers are making threatening gestures and issuing warnings. The international community seems to be following through on its past behaviors.

If you aim to safeguard your financial resources, it might not yield favorable results by keeping them in traditional fiat currencies. Governments tend to print money for various reasons such as funding wars or managing debts. The more currency gets printed, the greater the devaluation of the currency becomes. Wealthy individuals with assets witness their value grow, whereas those without assets experience a progressive loss of purchasing power due to the currency’s diminishing worth.

Bitcoin is outside of the system

Bitcoin stands out as the unique digital asset not tied to the standard monetary system based on fiat currency. Unlike traditional currencies that can be printed at will by governments, bitcoin’s creation is regulated by code. Furthermore, its supply is limited and predictable with new coins being mined regularly, providing transparency for all participants without any unexpected changes.

Bull market means price generally goes up

Despite its reputation for being immune, bitcoin is still influenced by market fluctuations. In times of significant events like wars or economic downturns, it can experience turbulence similar to other assets.

In a bull market for bitcoin, which we’re experiencing now, prices typically rise. Yet, it’s important to note that such markets aren’t without their challenges. Overzealous traders may pile on excessive leverage, leading to a market becoming excessively frothy. At these moments, the required correction – aimed at restoring balance – usually materializes.

Bitcoin has good support from previous bull market

If you’re concerned about bitcoin’s price fluctuations, step back and consider the bigger picture. It’s important to note that significant support exists from the previous bull market around the $63,000 and $60,000 levels. Should the price fall below these supports, the next major level of support can be found at approximately $51,000.

Potential bullish pattern forming

Looking closely at the recent price movements over the past few weeks, it’s apparent that the $60,000 mark is serving as significant support. If this level holds, a potential chart pattern may be emerging. It could turn out to be a bull pennant or a bull flag, but it’s too early to tell for certain. However, if the price remains relatively stable for a bit longer, this developing pattern could provide the momentum needed for the next phase of the bull market’s growth.

Could the trend for bitcoin take a turn downward? It’s certainly a possibility in markets. However, considering that bitcoin faces limited competition within traditional financial markets, holding onto this asset might be your best bet if you believe the answer is close to none.

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2024-04-16 13:02