• TennHedge

Bitcoin Poised for Major Breakout?

I am more bullish on Bitcoin in this moment in 2020 than I believe I ever have been. Bitcoin shrugged off a global pandemic and riots in major U.S. cities, continues to shrug off any and every price correction, and institutions are pouring their money into novel Bitcoin custody trusts such as Grayscale Investments as new Bitcoin supply dwindles following the recent halving in May. In fact, for weeks now, Grayscale has bought more Bitcoin for its clients than is being actively issued through mining by a factor of 1.5!


The U.S. Federal Reserve cannot get out of its own way, failing to realize that their monetary policies of easing and money printing IS the problem, not the solution to the problem in terms of the economy. The U.S. dollar's value continues to be eviscerated by seven old men in suits.


Meanwhile, the Bitcoin network is stronger than ever, and the market structure for Bitcoin looks the strongest it has in quite some time from a technical perspective.


Have a look for yourself:

We slipped slightly from the trend that we had been on since the March lows, but as you can see from the 2nd black slanted line on the right, we are only just barely off of trend - which remains up and to the right. RSI is at a neutral level, leaving plenty of room for a move up, Bitcoin is trading above every major moving average as well.


If only we can break that pesky little red line at the top of my chart. This line represents the downtrend Bitcoin has been on since 2017. Several days ago, we breached this key level, a level I consider the most important in all of Bitcoin trading, but the move was fleeting and short-lived.


But don't despair, view this initial test as one of many soon to come, like a battering ram at the gates of an occupied city, that city being the global monetary system. When Bitcoin breaches this macro downtrend level, price is going to scream higher like we have never seen before in this asset.


I believe this breakout is just around the corner. . .


You have been forewarned.


-TH


Disclosure: I am long Bitcoin.


You should always consider seeking financial advice from a licensed advisor before making decisions with your money, and you should not consider anything I write as financial advice but merely my opinion. Getting your financial house in order is a prerequisite for Bitcoin saving, in my opinion.


Disclosure: nothing in this article should be considered financial advice and I am not a financial advisor. Do your own research as everything in finance carries risk.