Bitcoin (BTC) is back above the $109,300 previous all-time high, which it surpassed on its way to the new all-time high of $112,000. After going back down as far as $106,600 over the last few days, Bitcoin is now consolidating above this level. Is this about to become good horizontal support and a springboard into the next stage of this bull market? Bond market under severe duress Cracks are opening in the global monetary system. Bond markets across the world are in disarray. In the US, buyers just cannot be found for longer duration bonds, and this is revealed in constantly rising 10, 20, and 30 year yields that just can’t seem to be kept down no matter what the US treasury does about it. The 10 year yield has dropped over the last few days from over 4.6% to 4.45%, but a higher high was put in, and this could be followed by a higher low, meaning that the trend could continue to go up. It might be argued that trust is the main element that is lacking in government bonds in these incredibly uncertain times, as more people begin to realise that governments are being forced to debase their currencies, thereby stealing the purchasing power of citizens, in order to be able to roll over the debt and keep the system going - albeit on life support. Bitcoin becoming more attractive It’s in this world that the Bitcoin life raft is floating. It has just surpassed both Amazon and Google to become the 5th biggest asset by market capitalization , at around $2.17 trillion. That said, there are still many across social and mainstream media platforms that would have us think that Bitcoin has made a market cycle top and that it’s generally downhill from here. With the greatest respect to many of these detractors who undoubtedly do have sound economic credentials, why would investors sell their Bitcoin now into fiat currency? Fiat is the problem - not Bitcoin. Fiat can be magicked into existence in the blink of an eye - Bitcoin cannot. This gives Bitcoin an attraction that puts it in the same category as gold, although more gold can be dug out of the ground to boost its supply. $BTC short-term chart Source: TradingView The short-term chart for $BTC shows that the $106,000 horizontal support (orange line) has been well respected. The previous all-time high resistance (blue line) is now in the process of being flipped into support. If the bulls are successful in doing this it would likely only be a matter of time before a new all-time high is made, and a more sustained surge takes the price to higher levels. The importance of the $106,000 horizontal support Source: TradingView The daily chart shows just how important the $106,000 horizontal level has become. It rests on some of the daily candle tops of the big bull flag, and this support is also noticeable in recent price action. It may be that the bulls aren’t ready to make their move higher yet, and there could be some more sideways price action that tests this strong support base. Having said that, if the current resistance does become support, we would perhaps be more likely to see upwards price action from here. Of course, there is also the possibility of a negative or positive catalyst that spurs the price in one direction or the other. Bitcoin is the life raft out of the system Nevertheless, asset prices are imaginably going to rise from here, benefitting from the amount of money printing or other methods that introduce more liquidity into the system. Ready to climb higher into the final stage of a cycle that could be about to increase in duration, Bitcoin is the soundest money out there. If central banks are buying gold, it means that trust in the monetary system is dwindling. Buying Bitcoin is your life raft out of this system. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
