Becalmed, but not for long
Bitcoin is currently trading sideways at around $30,000, showing signs of stability. However, this calm period may not last long, as a breakout could happen soon.
- Bitcoin recently reached a new high for the year at $31,500, indicating potential for breaking resistance in this bull market.
- If bitcoin breaks further downwards, there is strong support at $29,300 and $28,800. Additionally, a massive support level exists at $25,000, reinforced by the 200 MA and an upward trendline.
Dark economic clouds gather
The economic outlook remains uncertain, with concerns about inflation and potential housing crises in Western countries.
- Inflation may break its lower sequence in the US, while persisting in Europe and the UK.
- The upcoming BRICS summit in August could introduce a new rival reserve currency to the dollar, which has received limited coverage in the Western mainstream media.
- Many UK mortgage holders will face significant increases in payments as their fixed-rate mortgages come to an end.
- With the arrival of Winter, energy bills are expected to rise, potentially leading to a recession.
Bitcoin about to prove its worth
The million dollar question is how bitcoin will perform in this economic turmoil. It has yet to become the desired inflation hedge, but that could change.
- As Western economies ramp up money printing to combat Winter challenges, bitcoin, as the scarcest asset and immune to government manipulation, has the opportunity to demonstrate its safety as a haven.
- Those who can afford it may consider investing in bitcoin, gold, or silver before fiat debasement makes it more difficult.
Hot Take
Bitcoin’s ability to withstand economic uncertainties and prove itself as a safe investment option will be tested in the coming months. As inflation and potential housing crises loom, investors may turn to bitcoin as a hedge against economic downturns. Its scarcity and independence from government manipulation make it an attractive asset. However, only time will tell if bitcoin can truly live up to its potential as a haven in times of turmoil.
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