BITCOIN (BTCUSD) – Week 17- Bearish territory
The Louisiana House of Representatives recently passed a bill praising Bitcoin and its eponymous founder Satoshi Nakamoto for "contributing to economic stability." It claims that the flagship cryptocurrency will eventually replace gold as the world's reserve asset. The Chinese government, which is famous for its anti-Bitcoin and anti-cryptocurrency policy, seems to be softening its stance. According to Li Bo, Deputy Governor of the People's Bank of China, the country is considering Bitcoin as an alternative investment.
Bitcoin is sometimes referred to as a store of value asset and a hedge against other areas of finance since it is not tied to any central government or country. Former risk analyst and author Nassim Taleb, on the other hand, disagrees. In an interview with CNBC on Friday, after noting Bitcoin’s (BTC) similarity to a Ponzi scheme, Taleb said: “There’s no connection between inflation and the coin. None.”
Technically, since we broke the blue trendline marked on the chart we find ourselves in bearish territory. We have to study the market structure at the support or resistance areas marked on the chart to understand where the next wave will be. There is a high probability for the price to reach the support at 43k after it touches the resistance or straight away.
Trade with care.
Best regards,
Financial Flagship
Disclaimer: The analysis provided is purely informative and it should not be used as financial advice. Remember that you need a plan before you start trading; so, take this knowledge and use it as a guidebook that will ultimately help you understand the market and easily predict your next move.
Bitcoin is sometimes referred to as a store of value asset and a hedge against other areas of finance since it is not tied to any central government or country. Former risk analyst and author Nassim Taleb, on the other hand, disagrees. In an interview with CNBC on Friday, after noting Bitcoin’s (BTC) similarity to a Ponzi scheme, Taleb said: “There’s no connection between inflation and the coin. None.”
Technically, since we broke the blue trendline marked on the chart we find ourselves in bearish territory. We have to study the market structure at the support or resistance areas marked on the chart to understand where the next wave will be. There is a high probability for the price to reach the support at 43k after it touches the resistance or straight away.
Trade with care.
Best regards,
Financial Flagship
Disclaimer: The analysis provided is purely informative and it should not be used as financial advice. Remember that you need a plan before you start trading; so, take this knowledge and use it as a guidebook that will ultimately help you understand the market and easily predict your next move.
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