With inflation soaring, banks collapsing, stablecoins de-pegging, and most importantly, the SPY struggling, what is going on with Bitcoin?
Surely, we must be pushing for new lows by now, right?
Wrong.
Bitcoin was born out of the turmoil of the traditional financial markets and banking system.
Moreover, we are getting some prime technical confirmations of the fact that the bottom is likely in, and that we could probably go significantly higher.
As most people are aware, Bitcoin had a very strong start to the year, where it essentially broke out of a multi-month resistance line.
What is more important, however, is that Bitcoin pulled back to slightly below 20k last week, but that this dip was short-lived.
Purely technically speaking, Bitcoin has broken resistance on the significant weekly timeframe AND, has successfully back-tested this previous resistance into what is now support.
Even though the previous weekly candle for Bitcoin was red, the wick to the bottom and the very small body, suggest that buyers are in full control.
Apart from the very bullish statement that Bitcoin is making against its USD pairing, Bitcoin is also up-trending viciously against other cryptocurrencies.
This is reflected in the steady way in which BTC is making higher highs and higher lows on the BTC.D chart (which represents the strength of Bitcoin in relation to altcoins as a whole).
For those wondering if this is a good environment for a so-called “altcoin season”, in my opinion, it isn’t.
My message is clear: Bitcoin is doing everything (and has always done everything) that it needs to do to prove that it is capable of reaching much higher levels, both in relation to the dollar and in relation to alt/shit coins.
Of course, one always needs to manage their risk, and while this is no financial advice, if Bitcoin were to drop below $19,500 (the low from last week), we likely go a bit lower (without necessarily breaking the $15,500 low), so applying a stop loss remains key!
Good luck.
BTC_Jay
