- Bitcoin (BTC) prints double-digit gains
- Central banks could slash interest rates to avert a global recession, boosting risk assets in the short term & safe havens in the long term
Perhaps in anticipation of an economic slowdown and central banks intervening by cutting rates, data suggests fund managers are shifting capital to Bitcoin. In the last week, BTC is up 21.9 percent and likely to surge to $15,000.
Bitcoin Price Analysis
Fundamentals
At 2019 highs, the world’s most valuable asset now has the attention of the general public. With this newfound focus, volatility is back. Nonetheless, BTC prices are all over the place. As prices fluctuate, it conjures many memories of the Bitcoin mania that swept the world back in Q4 2017. Then, it was not rare for prices to double in short bursts.
Over the weekend, prices soared past $11,000 after surging above the psychological $10,000 level in less than 24 hours. That was a hallmark of bulls. Even after last year’s winter thawed, the global economy is seemingly in tatters, benefiting investors of BTC and gold.
While gold is above a 5-year range, BTC is registering double-digit gains, as Wall Street is jittery. Employment is weak and a trade war is raging. Therefore, to stimulate a fledgling economy, central banks are slashing rates.
The Reserve Bank of Australia is leading, and the US Federal Reserve could be next as President Trump castigated Governor Jerome Powell on his decisions. Aptly described by different reports, a recession is imminent. However, low Fed Fund rates could save the stock market:
“The collapse in bond yields since this spring has been stark, swift and global, prompting a rush to lock in low rates that few expected to see this deep into a decade-long economic expansion.”
Candlestick Arrangement
Retesting $11,000 for the second day in three days, BTC is 21.9 percent higher from last week’s close. Regardless, from candlestick arrangements, there is room for more upsides. From the look of things, LTC is leading the way. Because of this, there could be a BTC undervaluation.
Notice that behind this break and close above $10,000, there is a spike in trading volumes. Because of this, momentum is high. As a reflection, bull candlesticks are banding along the upper Bollinger Bands setting the pace for further gains.
Technically-and in light of the hype element, every low is an entry point. Safe stops would be on June 23rd low of around $10,100. Meanwhile, fitting targets is at $12,000 and later $15,000.
Technical Indicators
Aforementioned, activity is on the rise. From June 19th, trading volumes rose from 19k, peaking on June 23rd at 38k before halving to 17k. Even so, as bulls flow back, prices and trading volumes shall spike as every dip becomes a loading point for traders.
Chart courtesy of Trading View. Image Courtesy of Shutterstock