- Bitcoin is in the same league as gold and silver.
- The technical picture implies the sell-off before the strong recovery.
Bitcoin may be on the verge of an explosive upside move, the founder of Hayman Capital Management Kyle Bass believes. He expects the first digital currency to follow the lead of gold and silver on their move to new highs as global money printing policies will force investors to seek alternative tools to protect their capital from inflation.
Last year, Bass suggested that Hong Kong millennials used Bitcoin for the purpose of capital flight. How this asset will serve as a hedge against inflation caused by massive monetary injections.
In a recent tweet he put Bitcoin in the same league as gold and silver:
Silver, Gold, Bitcoin, etc all look to be ready to make explosive moves higher given the sheer amount of money printing going on around the world. Here is a chart or front-month silver going back 10 years.
BTC/USD: Technical picture
Bitcoin was locked in a tight range for too long; however, the bulls woke up and pushed the price of the first digital asset above the local resistance of $9,200 and towards 50-day SMA at $9,350. At the time of writing, BTC/USD is changing hands at $9,400, having gained over 2.6% since the start of the day.
Now the local support is created by the above-mentioned 50-day SMA. Once it is out of the way, the sell-off is likely to gain traction with the next focus on $9,230 ( the middle line of the 1-hour Bollinger Band) and the broken channel resistance at $9,200. The major bearish target is created by psychological $9,000, reinforced by 100-day SMA and the lower line of the daily Bollinger Band.