InvestorPlace – Stock Market News, Stock Advice & Trading Tips
Smart money buys the Bitcoin ( BTC-USD ) dips with confidence.Early adopters have won and will continue to partake in excellence.It’s all going digital so hop on the bandwagon.Source: Sittipong Phokawattana / Shutterstock.com
The argument over whether Bitcoin ( BTC-USD ) is fake or real will probably never end.Meanwhile active investors already transacting in BTC-USD have opportunities that the others cannot match.This is a statistical fact not an opinion.I judge it by how well it has performed in the last 10 years.Meanwhile the basket of critics is still massive, but therein lies a massive upside opportunity in the long run.
Eventually the doubters will have to capitulate and learn what cryptocurrency is all about.
By then the early adopters would have a gigantic advantage in knowledge and perhaps crypto assets.There is simple logic to support this argument, and it’s already happening in other areas.Most aspects of our lives are migrating towards becoming digital.The question the is why would money be any different?
In fact, there have been baby steps towards that from what’s already happening with banking.
The world has been pursuing more streamline processes of asset transfer for ages.The onset of credit cards arguable started the move decades ago.
Visa (NYSE: V ) and MasterCard (NYSE: MA ) to name two blazed those trails.
But now we have younger and more innovative companies like Block (NYSE: SQ ) and PayPal (NASDAQ: PYPL ) taking giant leaps forward.
This digitization of financial transactions went into panic mode after the pandemic lockdowns.
BTC-USD Bitcoin $40,345.96
Bitcoin Serves a Great Purpose Fintech is now on a fast path to legitimacy, and benefiting from what’s happening in the cryptocurrency world.Bitcoin is driving the need for innovation, and it leads the whole sector.Therefore what happens to BTC-USD will likely spill over to the rest of the cryptocurrencies.Valuation is in the eye of the beholder.
The prevailing opinions are of shock at how fast or how high it rallies.
Conversely there almost is palpable joy when it crashes, judging by my own friends’ reactions.
7 Long-Term Stocks to Buy for a Robust Retirement In reality, every major dip so far has been an unbelievably profitable opportunity for buyers.Nothing even comes close to matching the returns that the brave have reaped from buying bitcoins under duress.Going forward, the debate of it being fake or not is immaterial.For as long as it has fans wanting to own it, it will retain value.The same concept exists now in gold and other rare assets.Regardless of personal opinions investors transact in them for monetary gains.
Levels Matter in the Short Term
Click to Enlarge Source: Charts by TradingView
Let’s talk price levels and there are some great clues there.BTC-USD lost a critical neckline straight of the year’s start near $46,000.
It tried to recover it three times and failed.With its last attempt it even exceeded it temporarily to $48,000 but then reverted and crashed 20% lower.
This sets the markets to beat for the Bitcoin bulls.The goal for the next few weeks is to regain the January neckline and hold it.Otherwise, the bears remain in charge and they will make try to make new lows.
Just like there is resistance above, there is support below from January and Feb.24th.If the bears are able to breach those, then BTC would be in danger from retesting the low 20’s.Eventually there is an argument for it to revisit that, but that would be a bullish thing.
In fall of 2020, that was the spot from which it exploded to exceed $60,000.Revisiting breakout necklines is part of normal price action inside an extremely abnormal rally.Therefore, I would be confident in allocating risk at each of these two steps below.The easy takeaway from my synopsis today is that buying the dips in Bitcoin makes a lot of sense.
On the date of publication, Nicolas Chahine did held USDC,CRO,ETH,SOL.The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines .
The post Bitcoin Is the Chief Coin In Charge of a Digital Financial Revolution appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc..