After Wednesday’s large gains in the crypto market bitcoin is once again knocking on the door of $38,000. A breakthrough here could see the way clear to $48,000.
Bitcoin goes up as fiat currencies go down
The crypto sector is continuing to show the way forward even as the dollar and the global fiat currency system look ready to collapse. Holding scarce and sovereign hard money outside of the antiquated banking system is very arguably the place to be as fiat currency continues to be debased by central bank printing.
Bitcoin is that place of safety and security for the long term. Of course, bitcoin can still be highly volatile in comparison to fiat currencies, but over the long run it is proving to be a reliable store of value.
Since the beginning of this year bitcoin is up over 140%. At the same time, how much value have fiat currencies lost through debasement, and through the hidden and unfair tax of inflation?
There is absolutely no comparison between bitcoin and fiat. Fiat is controlled by governments that need to spend more and more of it in order just to cover the interest on their debts, while bitcoin can be bought and sold and sent to anyone at will, and all know how much bitcoin is being issued out of a scarce supply of 21 million coins.
Bitcoin price possibilities
With all this mind, bitcoin is currently nudging up against the next resistance at just under $38,000. With a spot bitcoin ETF coming by early 2024 there isn’t going to be much that can stop bitcoin in its tracks.
Source: Trading View
Granted that there will be a fairly decent pull back for bitcoin, which could happen at any time, but the next powerful surge up to the $48,000 resistance level is still very much on the cards, and can certainly take place first.
The $48,000 price level also happens to be in the area of the golden 0.618 fibonacci level, which can be a likely place for bitcoin to make a reversal.
The need to be in bitcoin
That being said, there is plenty of time for ups and downs with bitcoin given that the bull market is only really just out of phase one. Phase two can be the building of more market structure on top of what bitcoin has managed so far, and phase three could be that last mad run to potential new highs.
Keeping ones’ money in the bank, and all the perils and possible losses that this can mean, looks to be a very poor alternative to the solidity and safety of bitcoin. All should do their homework on both options. There isn’t much time to lose.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
