Bitcoin broke Pivot Point SuperTrend in 1M first time ever
Bitcoin dominance broke the Pivot Point SuperTrend line in the 1M chart for the first time in history.
I'm not exactly sure what this means from a technical analysis standpoint, but considering some basic facts:
Bitcoin as a Store of Value: High inflation erodes the purchasing power of fiat currencies, which may lead people to seek alternative stores of value, like gold and potentially Bitcoin as well. This could increase demand and consequently, the price.
Role of Institutions: If inflation remains high, institutions might also begin to consider Bitcoin as part of their investment strategy, further increasing demand and price.
Additionally, recent news:
The inclusion of Bitcoin in exchange-traded funds (ETFs) could affect its legitimacy and general perception in multiple ways:
Increased Legitimacy: The acceptance of an ETF would be a sign that financial regulators see Bitcoin as a legitimate and investable asset class. This could boost the confidence of both individual and institutional investors.
Increased Liquidity: An ETF usually brings increased liquidity, making Bitcoin more easily tradable. This could attract new investors, in turn, increasing demand and price.
General Adoption: The existence of an ETF could facilitate broader adoption since it offers an easier way to invest in Bitcoin without having to store the cryptocurrency. This may make investing in Bitcoin more appealing to a wider range of investors.
Therefore, it is possible that Bitcoin's dominance could rise to the level I have envisaged. How long this trend may continue or how high the dominance could go, I cannot say. At least, I would wait for this trend to end before investing in altcoins. Perhaps a mini alt-season is possible when Bitcoin's dominance increase stalls at some point and remains stagnant before another increase.
I'm not exactly sure what this means from a technical analysis standpoint, but considering some basic facts:
Bitcoin as a Store of Value: High inflation erodes the purchasing power of fiat currencies, which may lead people to seek alternative stores of value, like gold and potentially Bitcoin as well. This could increase demand and consequently, the price.
Role of Institutions: If inflation remains high, institutions might also begin to consider Bitcoin as part of their investment strategy, further increasing demand and price.
Additionally, recent news:
The inclusion of Bitcoin in exchange-traded funds (ETFs) could affect its legitimacy and general perception in multiple ways:
Increased Legitimacy: The acceptance of an ETF would be a sign that financial regulators see Bitcoin as a legitimate and investable asset class. This could boost the confidence of both individual and institutional investors.
Increased Liquidity: An ETF usually brings increased liquidity, making Bitcoin more easily tradable. This could attract new investors, in turn, increasing demand and price.
General Adoption: The existence of an ETF could facilitate broader adoption since it offers an easier way to invest in Bitcoin without having to store the cryptocurrency. This may make investing in Bitcoin more appealing to a wider range of investors.
Therefore, it is possible that Bitcoin's dominance could rise to the level I have envisaged. How long this trend may continue or how high the dominance could go, I cannot say. At least, I would wait for this trend to end before investing in altcoins. Perhaps a mini alt-season is possible when Bitcoin's dominance increase stalls at some point and remains stagnant before another increase.