Bitcoin is once more looking bullish as the world’s biggest decentralised asset has found a new influx of buying support to rally close to 20% in price since the start of July.
On a backdrop of global turmoils driven by a narrative of trade tensions, a breakout in the gold and commodities markets, and even US President Donald Trump calling out China and Europe specifically for currency manipulation, could this be the perfect storm for Bitcoin to break past resistance and head upwards to fresh 2019 highs?
China and Europe playing big currency manipulation game and pumping money into their system in order to compete with USA. We should MATCH, or continue being the dummies who sit back and politely watch as other countries continue to play their games – as they have for many years!
— Donald J. Trump (@realDonaldTrump) July 3, 2019
Long-time Bitcoin advocate Andreas Antonopoulos has reminded the community that governments may soon try and “blame crypto for the currency war”, but “the race to the bottom” for state-backed fiat currencies has little to do with the disruptive asset class.
The end of four-figure Bitcoin?
Towards the end of last week, Bitcoin continued to grind to defend its five-figure valuation. Unlike other downward price movements that we have seen of late, Bitcoin’s move down did not include any large-scale sell-offs, but instead a series of mini-dumps taking the price down from $12,000 to $10,000.
Since this local bottom was hit, we have seen volumes pick up and buyers come back into the market to drive the price back up to the same level where the ‘controlled’ sell-off began. If Bitcoin can now penetrate through the $12,000-$12,400 level of resistance, the move back up to $14,000 and beyond may be quicker than its initial parabolic rise in late June.
If the digitally-scarce asset does decide to rally up from this point, the odds of ever seeing an exchange-traded price of under $10,000 will decrease exponentially as fast as any potential move in the opposite direction.
Bitcoin will become the global reserve currency.
That is why we are all here.
Anything short of this becomes much less interesting.
— Pomp 🌪 (@APompliano) July 4, 2019
The popular Bitcoin analyst Anthony “Pomp” Pompliano recently outlined his $100,000 Bitcoin target for the end of 2021, but the chances are that if we do see all-time highs broken sooner rather than later, a six-figure valuation for Bitcoin may become a reality quicker than even the most bullish commentators in the space would ever expect.
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Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.