Tanya Abrosimova
Independent Analyst
- Bank of America Merrill Lynch names Bitcoin the best asset of the recent ten years.
- BTC/USD is locked in a tight range above the psychological $7,000.
The US-based Bank of America Merrill Lynch believes that Bitcoin (BTC) is the best investment asset of the past ten years based on total investment return.
According to the financial giant, one US dollar invested in Bitcoin in 2010 would have brought $90,026 today. Notably, the American stock market's would have earned $3,46 for each invested dollar during the same ten years.
While the first cryptocurrency has lost about two-thirds of its peak value, $19,811 reached in December 2017, cryptocurrency enthusiasts believe that we are just at the very beginning of a massive bullish trend that will take us much above $20,000 towards new record highs.
Recently, the founder of Silk Road, an online black market, Ross Ulbricht, said that Bitcoin might reach $100,000.
BTC/USD: the technical picture
Meanwhile, at the time of writing, BTC/USD is changing hands marginally above $7,000, This area is the lower boundary of the recent consolidation pattern, reinforced by the lower line of the daily Bollinger Band. Once it is out broken, the sell-off is likely to gain traction with the next focus on $6,500 supported by November's low, and $6,300 ( the lower line of the weekly Bollinger Band). A sustainable move lower will unleash the bearish power, which may be amplified by low liquidity conditions typical to the pre-holiday period.
However, considering flat RSI (the Relative Strength Index) both on a daily and weekly chart, the coin may continue drifting lower within the sloping range limited by $6,500 on the downside.
On the upside, We will need to see a sustainable recovery above $7,300 for the bull's momentum to gain traction. This development will take us above the middle line of the daily Bollinger Band and 61.8% Fibo retracement for the move from $3,226 to $13924. The next upside target is created by a psychological $8,000 with SMA50 (Simple Moving Average) daily located just above this area. However, to break the downside trend, Bitcoin bulls will need to push the price well above the trendline resistance currently at $9,000.
BTC/USD, the daily chart
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Ripple wipes out weekly gains, experts comment on role of Ripple stablecoin
Ripple declined to $0.52 on Thursday, erasing all gains registered earlier this week. Ripple SVP Eric van Miltenburg’s comments on the firm’s stablecoin, and how it is expected to benefit the XRP Ledger and native token XRP have raised concerns among crypto experts.
Hedera HBAR slips nearly 10% after air is cleared on mistaken link with giant BlackRock
HBAR price is down nearly 10% on Thursday, partly erasing gains inspired by the misinterpreted link with BlackRock. Despite the recent correction, Hedera’s price is up 44% in the past seven days.
The reason behind Bonk’s 105% rise and if you should buy now Premium
Bonk price has shot up 105% in the past five weeks. A retracement into $0.0000216 or the $0.0000152 to $0.0000186 imbalance would be a good buying opportunity. Patient investors can expect double-digit gains from BONK that could extend up to 70%.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?