Despite it’s recent (and brief) spike beyond the $11,000 range, bitcoin isn’t quite where we’d like it to be. The currency, while slightly bullish at the time of writing, isn’t exhibiting nearly the same price behavior it was weeks ago when it first rose above the $12,000 mark.
If You’re Looking to Buy Bitcoin, Now May Be the Time
But some analysts say that’s a good thing, and that for the first time in roughly six months, bitcoin’s technical charts are flashing buy signals. The currency has fallen as of late and is well over $1,000 less than where it was trading in late August. Some analysts believe that this is a solid opportunity for many new traders to get involved in crypto, while older or experienced traders have a chance to add to their wealth stashes and garner new coins for less money.
Right now, several technical indicators are suggesting that bitcoin is in a good position to be bought. The Global Strength Indicator (GSI) is saying that this is the first moment bitcoin is ready for purchase since last March when the coronavirus first meandered throughout the global financial markets. Bitcoin was hit hard during that month, with its price experiencing solid crashes that eventually took the coin down to the high $3,000 mark for a short period, though it would only take about two months for the asset to fully recover and then some.
In addition, while bitcoin is doing well as of late, other cryptocurrencies are entering bearish statuses, with assets like bitcoin cash and even Litecoin falling around three percent in the past 24 hours alone. Steve Ehrlich – chief executive officer and co-founder of Voyager Digital – explained in an interview:
The price of bitcoin is reflective of the belief that bitcoin is a hedge against the overall global economy. Bitcoin is extremely resilient and as it gains more and more adoption, in conjunction with better regulations suited to support bitcoin, it continues to demonstrate its position as a reliable store of value.
The asset has endured a strange several weeks in that it was initially trading for just over $10,000 following news that a second stimulus may be coming our way and that banks are now permitted to offer crypto custody services to their customers. Despite its growth, the currency has experienced solid resistance from the $12,000 line, which it only surpassed for what felt like a few moments. It’s initial attempt to jump past this number is what arguably brought it back down nearly $2,000.
The Right Qualities in BTC
Nigel Green – chief executive of deVere Group – still believes the asset should be attractive to most traders, claiming:
Bitcoin’s key characteristics, such as its fixed supply and how transactions are immutable, distributed, non-sovereign and decentralized are highly attractive for investors in an uncertain but increasingly digitalized, tech-driven world.