Bitcoin Price Jump as the Cryptocurrency Takes Off Again
- Bitcoin jumps over resistance
- Fear continues to run the global markets
- Central banks looking to cut rates even further
The Bitcoin markets have taken off to the upside, breaking above a significant amount of resistance. The previous uptrend line has now been broken above, and that is a very bullish sign.
It now appears that we should be paying more attention to the fact that the $9250 level has offered support. As a result, it’s highly probable that it’s the bottom of the overall consolidation. With that being the case, it’s very likely that we are going to continue to try to grind to the upside, given enough time.
Fear pushes traders into crypto markets
If there is one word to describe the global financial markets, it would be “fear.” At this point, the market is highly likely to continue to find plenty of reasons to be cautious about global growth, central bank easing, and rates cutting.
Ultimately, the market has seen enough for it to be running for cover. Bitcoin is an excellent place for most traders to put money in as a wealth-protecting mechanism.
The technical structure of this market suddenly looks much better than it did a few days ago. As we have pulled back towards the $9250 level, and then bounced significantly, we may very well continue to go higher. This could perhaps reach the top of the overall consolidation that we have seen for some time.
Ultimately, the market could go to the $12,000 level. That area has caused massive resistance, so we could see some trouble there again. That being said, it’s very likely that we will continue to go back and forth, so I think short-term pullbacks will be thought of as buying opportunities. Beyond that, we have jumped above the 50 day EMA, which is very bullish as well.
The trade going forward
The trade going forward is to simply buy pullbacks as we continue to see a lot of volatility around the world. I think the Bitcoin markets will continue to attract a certain amount of flow as people take their money out of riskier assets, and then also out of certain international boundaries.
For example, the Venezuelans have bought more Bitcoin in the last month than they ever have. That could continue to be the case going forward, as there are a lot of people looking to hide from the volatility of stocks, commodities, and everything else. Recently we have seen that markets continue to get away from typical assets that are highly correlated to fiat currency. Even though the US dollar has been strengthening, Bitcoin continues to attract a lot of monetary flow simply due to the fact that people are trying to run away from so many issues at the same time.