Bitcoin- On the Cusp of a Major Breakout as Volatility Decreases
Bitcoin has had a rough ride since the end of July, seeing its gains roll back from $14,000 to a sideways movement around $10,000. World market news and negative press have the public assuming Bitcoin is down for the count, but that couldn't be further from the truth. Bitcoin is on the cusp of a major breakout from both a technical and macro perspective, and now is the time to load up.
Bitcoin is currently stuck in a sideways trade between $9,999-$10,700. This wavering pattern has come as the result of negative press regarding Bitcoin's status as a safe-haven asset and as the Chinese Ponzi Scheme has dumped around $3 billion in Bitcoin.
Bitcoin has seen a decrease in marketcap of approximately 30% since last month, and investors have assumed the well ran dry. Bitcoin's market dominance slumped slightly to approximately 69%, and its marketcap is around $180 billion. Altcoin season is no where to be seen, so expect money to flow into the king of cryptocurrency, so Bitcoin is the place to be right now.
We are only 9-months from Bitcoin's rewards halving, and institutional investors have dumped hundreds of millions of dollars into the cryptocurrency market. According to analysts, institutions are dipping their toes into the cryptocurrency markets, and are waiting for volatility to die down before making larger investments. As the market calms and the media cycle avoids cryptocurrency, expect big moves from an institution like Fidelity to come through.
Overall, I am very bullish on Bitcoin now, and believe it will find another leg up. Resistance is firmly at $11,000. If we break below $9,500 we may see a retracement to below $8,000 as a new bear cycle takes hold. I see us traveling higher as the rewards halving approaches. Get ready.
Picture from Pixabay.