Even after the positive CPI print of yesterday, Bitcoin is still looking depressed. With the market waiting for something to happen, Bitcoin might just surprise.
There is still a lot of fear in the crypto markets. FUD is all around in the mainstream media. Regulations are closing in and the US is still seemingly hell bent on closing crypto down.
Bitcoin rally still on?
However, bitcoin is still holding the current support at around $27,000, having dipped under $26,800 already this week. The downwards wicks are still getting bought up signifying that there is still a lot of interest in this bitcoin rally.
Should the price do the unexpected and rise, breaking through the downward trend line from April 10, there are a lot of short positions sat at around $30,000 to $31,000 and these could be squeezed out, leading to a rapid move to the higher $36k + region.
Protect your purchasing power
As mentioned already, there is a lot of FUD around crypto and this does include Bitcoin to some extent given the higher taxes that Biden wants to impose on crypto mining in the US.
However, of all the cryptocurrencies Bitcoin is the most decentralised and the most unstoppable. We’ve seen what happened when China banned crypto transactions completely – mining operations just relocated overseas, and now Chinese bitcoin mining has risen again to produce the second most hash power globally.
The banking crisis is not going away any time soon, and can potentially get far worse yet. The US economy is possibly heading for a severe melt down later this year and into 2024, and the Russia/Ukraine war still rages on.
People will need a way of protecting their purchasing power as the dollar and all other fiat currencies suffer more and more debasement as central banks do the only thing they still can, which is print more currency.
Bitcoin bull run is still to come
The mainstream media will continue to publish crypto scam this and crypto scam that, and a lot of this will be true. However, what the mainstream media will not tell you is that Bitcoin, and a few of the wildly innovative technologies in crypto, are likely to transform the financial landscape as we know it.
Bitcoin will enter its bull run in the next year or so, and a few of the best cryptocurrency projects may well join it.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Source: https://cryptodaily.co.uk/2023/05/the-lull-before-the-bitcoin-storm