We have just entered into a future with a higher degree of uncertainty. Times of more rapid change promise innovation, a higher degree of risk-taking. In short, evolution on steroids awaits. History shows that times like these spell opportunity. With hyperinflation as a possibility on the table, money will have to move. The euro might break, governments might institute virtual currencies, a world currency might be born – there is a vast list of possibilities. All of this means flux – a transformation from one barter of value to another. Long established value companies might break and might have to make way for new innovation. Think the birth of the internet 20 years ago but powered exponential.
Bitcoin will be one of the few items that might sustain. We will see a vast inflow of market participation in this trading instrument. In a way this “movement” already has started.
Bitcoin (ExmoUSDT) Weekly Chart Showing Strength:
Looking at this weekly chart, we can make out that after an initial rejection of resistance near the US$6,500 level, this resistance zone has now become support. The initial bounce from point A to point B generated a percentage move of 97% gains. The fact that we, at least temporarily, bounced right away again from point C, the US$6,500 level, shows strength again.
The overall stock market bounced based on the action/reaction principle as well. But by far not at the same percentage levels that Bitcoin has. It is not clear just yet if this is just relative strength on the part of Bitcoin or if this instrument has already been chosen as a safe haven from lurking hyperinflation. It definitely deserves the attention to be one candidate of investment vehicles of a new era to come.
BTC-USDT Daily Chart Long Term Position Building:
As much as we show strength in Bitcoin right now, we expect declines to lower levels once overall markets should see their next larger down leg. We have successfully managed to build core positions in Bitcoin with reloads (see our quad exit strategy). The daily chart above shows in green horizontal supply and demand zones, where we are looking to re-enter the market again to add to our long-term core position.