Thursday, April 22, 2021
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BTC Hits $11.6k, Next Stop $12k

Next Target To Hit

The daily chart below shows clear upwards movement, nearing closer to the next critical resistance level. The next resistance zone to stay in is $12k-$12.4k. Staying within this new resistance zone with consistent volume and enough buying power will give bulls the momentum they need.

BTC/USD 1-day chart. Source: TradingView

Comparing to Early 2016

When compared to the previous bull cycle in 2016, we see a few similarities in movement. In 2015 and 2016, a period of six months was defined by range-bound construction before a breakout happened.

BTC/USD 1-day chart (2015–2016). Source: TradingView
BTC/USD 1-day chart (2019–2020). Source: TradingView

Stimulus Dependent

All markets are depending on a stimulus package to come our way soon. Goldman, Sachs has recently announced their bearish view on the greenback and predicting all assets to rise as the dollar falls. This would be of course accelerated if the government continues to give out handouts to citizens and small businesses in need. The fear of negative real interest rates in the U.S. are starting to actualize as governments around the world continue to give out cheap debt in order to stimulate their economy. All-in-all this is uncharted territory and although scary, this can make assets like gold and bitcoin shine.

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