Latest Bitcoin News
Let’s have some perspective on how miniscule the world’s most valuable cryptocurrency is. At the core, the objective of Bitcoin as spelled by the anonymous founder Satoshi Nakamoto is to be the world’s peer to peer cash payment system. Thing is, over time Bitcoin has evolved into space’s safe haven and during last year’s price slump, investors quickly moved their monies from riskier tokens and coins to the more liquid and trusted coin—Bitcoin.
Therefore, over time, it is apparent that Bitcoin is not only a store of value thanks to its relative stability but is also becoming a settlement layer. A secure, settlement layer over which systems can be built on rivaling traditional, centralized by scalable systems like Visa and MasterCard.
Because it is secure, trustless and immutable with no single point of control, its store of value property often draws the physical and digital Gold comparison. In reality, though, there is a deep gulf between the two. Not only is Bitcoin superior but we also know the total supply of this scarce asset.
At the end of the day, there will be 21 million BTCs to ever circulate and all you need is a hard wallet to secure and have control of your coin. Meanwhile, Gold with a superior market cap of around $7.7 trillion—According to the World Gold Council there are 187, 200 tons of Gold each retailing at $1,275 per Oz—is hard to store, infinite supple (a natural resource that is yet to be fully explored) but remains a trusted asset all over the world. The question in everyone mind is: Will Bitcoin replace or complement Gold?
BTC/USD Price Analysis
Last week’s performance jolted Bitcoin prices from the dredges. A single bull bar was enough to reignite old flames and what we have now is renewed activity as users sense bottoms. BTC is up 4.9 percent from last week’s close and the path of least resistance is defined. For a better point of view, we shall consider the weekly chart and from here, our reasons for optimism is sound.
Note that despite last week’s 8.4 percent gains, prices are still oscillating within week ending Dec 23 high low. That has been the case in the last few weeks and in reality, we need confirmation for our trade plans to be valid.
As visible from the chart, bulls are yet to clear the $3,800 mark and until then, we shall hold on to previous BTC/USD trade conditions and wait for a satisfactory close above this minor resistance line before risk-off traders buy on dips with first targets at Dec 2018 highs of $4,500.
Meanwhile, conservative bulls ought to stay on the sidelines until there is a solid breakout above late Dec—Jan 2019 congestion. That means strong moves above $4,500 or Dec 2018 highs at the back of strong volumes. Only then will we see a probable renewal of bulls propelling prices towards the all-important resistance and first targets at $5,800–$6,000 zone.
All Charts Courtesy of Trading View–BitFinex
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.