- BTC slides 2.1 percent
- Bitcoin is a safe haven, a Satoshi now worth more than several fiat currencies.
Hardly surprising, a single Satoshi, the smallest unit of Bitcoin, is more valuable than several fiat currencies. Increasingly, Bitcoin is a safe refuge against inflation. As such, accompanying demand could spur demand, thrusting BTC above $9,100 towards $10,000 and beyond.
Bitcoin Price Analysis
Fundamentals
What’s encouraging is that Bitcoin (BTC) bulls are back after a bit of a hiatus. It’s a relief for traders, as well as optimistic investors, reeling from last year’s collapse. Nevertheless, that is not an endorsement of bulls. If anything — and this being very conservative — there must be complementing fundamental and candlestick arrangements flashing “buy” before buyers take charge.
Meanwhile, tech companies are readying their machinery and deep pockets for this space. In other words, their crosshairs are on crypto. Facebook is leading the way, while Samsung and Apple are installing the necessary infrastructure.
The entry of Facebook and their novel project, “Libra”, as they roll out a stablecoin pegged by a basket of fiat currencies is an existential threat. Bitcoin may end up suffering. That is because Facebook will surely leverage their broad user base, mobilizing more than two billion active users to use a stablecoin.
Meanwhile, the news is that ravaging inflation in countries as Iran and Venezuela means the smallest unit of Bitcoin, Satoshi, is worth more than a single government-issued Iranian Rial and a Vietnamese Dong.
https://twitter.com/Rhythmtrader/status/1137687056551989249
However, the list of near worthless fiat currencies, thanks to bad leadership and central bank printing, could be higher if BTC spikes to over $20,000.
Candlestick Arrangement
Currently, Bitcoin is changing hands at $7,804, dropping 2.1 percent in the last day. All the same, bears are marauding in higher time frames. At spot rates, BTC is down 4.8 percent week to date. In line with previous BTC/USD trade plan, it is crucial that prices rally and close above May 2019 high.
The level is at $9,100. Once bulls close above this mark, then traders can confidently tune entries in smaller time frames with modest targets at $10,000 and later $12,000. Meanwhile, aggressive traders can enter at spot rates with a stop limit at $7,500. $7,500 is the main support line of the $1,000 trade range where prices are oscillating in.
Technical Indicator
Optimistic, May 30th bear candlestick leads this trade plan. The bar has high trading volumes of 31k. If bulls are in control, any breakout above May high must be with an uptick in participation exceeding 31k or even 47k of May 13th.
Chart courtesy of Trading View. Image Courtesy of Shutterstock