Bitcoin culd be an investment option amidst global uncertainty
The emergence of Bitcoin since 2009 has added color to the world of financial markets. Even though it is a debate among investors, there is an interesting side to Bitcoin which might be an investment option amidst global economic uncertainty.
One of the advantages of Bitcoin is that it protects against inflation and devaluation of fiat currencies. Because Bitcoin supply is limited and its nature is decentralized. So it is not affected by government policies which tend to cause inflation.
As is the case in Argentina. Reporting from CNBC, Bitcoin demand in Argentina has reached its highest level in almost two years as the Argentine peso continues to experience a sharp decline against the US dollar. the value of the Argentinian peso against the US dollar has fallen significantly, from 0.0049 USD per ARS in March 2023 to just 0.0012 USD currently.
This condition has encouraged Argentine citizens to look for more stable investment options to protect their wealth, one of which is buying Bitcoin. According to data from Lemon Cash, a cryptocurrency exchange in Argentina, nearly 35,000 customers bought Bitcoin in the week ending March 10.
However, not all investors agree with Bitcoin, one of which is Jim Rogers, a former business partner of George Soros who co-founded Quantum Fund and Soros Fund Management. He believes that crypto will not last long. Rogers doubts Bitcoin's ability to replace safe-haven assets such as gold and silver.
Bitcoin/USD technical analysis today
Bitcoin price is now trading around $70k. In 24 hours Coinmarketcap data shows Bitcoin price range at Low $66,414.83 and High $71,162.59.
Elitsa Taskova, Chief Product Officer at Nexo, thinks Bitcoin could soar to $100k if miners can increase their holdings without immediate sales. On the other hand, the price may fall to $40k if the mining facility is forced to liquidate assets for operational funding.
On the Ticktrader chart today Bitcoin is moving above the middle band line. After successfully breaking the median level of the Bollinger band, the price formed strong bulls with a small shadow on the top candle.
On the daily timeframe, the Bollinger band appears to still form a flat channel, an indication of a sideways market with a slightly narrowed band, an indication of reduced volatility.
MA 50 still has the same structure, below the lower band forming an upward channel indicating an uptrend market.
The RSI indicator shows a value of 59, which means the price is above the uptrend level.
On the H1 timeframe, the price moves below the upper band line. Prices appear to be correcting after yesterday's rally.
The Bollinger band indicator appears to be expanding in this time frame, indicating that market volatility is increasing.
MA 50 above the lower band line forms an upward channel indicating an uptrend market.
The RSI indicator shows level 63, which means the price is above the uptrend level
Support and resistance
S3: 26055.2
S2: 39495.4
S1: 50866.7
R1: 73727
R2: 73727
R3: 73727