Is Bitcoin Ready to Break Out of its Downward Channel?
Bitcoin has been stuck in a downward channel since June, but recent positive price action has raised questions about its potential for a breakout. Here are the key points to consider:
- Bitcoin has been in an accumulation phase for the past seven weeks, following a spike in mid-June.
- The recent positive price action has allowed bitcoin to emerge from its bull flag.
- If the breakout is confirmed, bitcoin could potentially reach $35,000, with $30,000 becoming a new support level.
- However, failure to break out of the flag could bring bitcoin closer to its major support, the 200-day moving average.
- Despite regulatory concerns and negative news surrounding crypto exchanges, there is still enough positive sentiment to balance the market.
It is worth considering why people continue to keep their fiat currency in banks instead of investing in bitcoin:
- Fiat currency experiences a reduction in purchasing power as central banks print more of it to pay debts.
- Banks are propped up by their own central banks, which can lead to further inflation and loss in purchasing power.
- Banks are becoming obsolete in the digital age, making the currency poured into propping them up seem wasteful.
Hot Take:
Bitcoin’s recent positive price action and potential breakout from its downward channel indicate a possible upward trajectory. Despite regulatory concerns, the market sentiment remains balanced. With the flaws of traditional banking becoming more apparent, it is no wonder why more individuals are considering bitcoin as an alternative investment.
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