Critics have been louder than ever when it comes to Bitcoin and other crypto-assets. However, Bitcoin, along with other major cryptocurrencies started the month of July with a bang. Let’s overview the bulls and bears from the technical and fundamental points.
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Bitcoin’s Curious Technical Analysis
By the end of Monday’s trading day, Bitcoin saw a 12% gain from June lows. This surge is interesting for two reasons.
One is that historically, July has generally been a bullish market for other investment assets such as the stock market. Now while we can’t say that the cryptocurrency market is completely correlated with the stock market, they both have shown some sort of correlation in the past year.
Second, is a technical bullish reversal indication that has gone off with the recent Bitcoin gains. The good ‘ole “Triple Bottom” chart pattern appears to be in the process of developing on the crypto’s daily chart when as measured against the USD.
However, these gains could very easily be capped by the bearish Ichimoku cloud, or at the next Fibonacci retracement resistance level of $8,500. What I’m trying to say is that from a technical point, we still don’t have enough reason to believe that a long-term bullish reversal has started. But a medium-term bullish trend may have started.
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Bitcoin’s Curious Fundamental Analysis
if you think the technicals are sending out mixed signals, wait until I tell you about the fundamentals. Among the loud critics of the cryptocurrency are famous billionaires and investors such as Warren Buffet, Bill Gates, Nouriel Roubini, and the former stockbroker made famous by Leonardo DiCaprio in the movie “Wolf of Wall Street,” Jordan Belfort.
On the other hand, Internet entrepreneurs such as the Winklevoss twins believe the criticisms are just a failure of the imagination. Not only that, major banks such as Goldman Sachs have announced plans to open a Bitcoin trading operation.
It is important to remember that while the cryptocurrency tokens may not have any fundamental value of their own, the blockchain technology behind them is what could revolutionize financial systems and become more valuable in the process.
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