Rally to $1 million could ‘happen very quickly’

By Marco Oehrl

Investing.com – Crypto enthusiasts who buy Bitcoin and hold it for the long term usually assume that fiat currencies are doomed.

Jan3 CEO Samson Mow assumes that the weakening of the euro, dollar & co. will continue to accelerate, while central banks around the world struggle with double-digit inflation rates. For Bitcoin, he believes this will mean the BTC/USD exchange rate will reach the magical $1M mark within the next five to ten years:

“happen very quickly… It just happens overnight and then you’re shoveling money into a wheelbarrow”

Fearing ongoing inflation, investors have used precious metals such as gold to diversify their portfolios for decades. That’s because, like Bitcoin, physical access is limited.

Goldman Sachs believes that gold is much better than Bitcoin for diversifying a portfolio. This is mainly because there are no speculative use cases for gold.

In the current market environment, gold increased somewhat over the past year, while Bitcoin saw a 75% drop in value. The reason for this is due to demand, as Goldman Sachs explains:

“Tighter liquidity should be less of a drag on gold, which is more exposed to real demand drivers.”

By this, the investment bank does not mean only central banks, but also industry, which uses falling prices to increase its shares. In contrast, the crypto market regularly panics, causing prices to plummet.

Bitcoin Technical Price Markers

Bitcoin is currently up 1.39% at a BTC/USD rate of $17,159, while the weekly gain is 0.92%.

The cryptocurrency broke through the support of the 23.6% Fibo retracement at $16,986 yesterday, while the daily low was formed at $16,878. However, the daily closing price was above the Fibo retracement, raising the possibility of a recovery towards the 38.2% Fibo retracement of $17,841. This resistance is reinforced by the 55-day MA at $17,993 and the immediate proximity to the psychological mark of $18,000.

The story continues

Only if this area has been overcome in a sustainable manner, an extension of the upward movement towards the 50% Fibo retracement at $18,533 can be expected.

If, however, a daily close occurs below the 23.6% Fibo retracement, the focus shifts to the November 28 low found at $16,013. Below that, a test of the cycle low at $15,504 should be expected.

(translated from German)

related articles

Bitcoin: Rally to $1 Million Could ‘Happen Very Quickly’

Monetary policy will not destabilize the economy: Yardeni Research

Bankman-Fried charged by SEC to appear in Bahamas court