Bitcoin exploded higher this week with a move over $20,000 on Wednesday with a subsequent break above $23,000 before letting off the gas, or should I say the superluminal propulsion system in this case? The 20,000 mark was a psychologically important one for Bitcoin bulls, which may help explain the speed with which it went on to break above the $21,000, $22,000, and $23,000 levels.
To some, the move higher may cement a growing case for Bitcoin to be included as an asset class among other more traditional investments. For others, the cryptocurrency remains to be seen as a “bubble” that doesn’t warrant the risk given its extreme volatility. Many investing elites are already in the former group, however, with titans like Stanley Druckenmiller, who announced he owns Bitcoin in November.
BTC/USD TECHNICAL OUTLOOK
Bitcoin’s explosion higher this week is nothing less than impressive by any measure or comparison within financial markets, historically speaking. Thursday’s intraday move in Bitcoin held short from crossing the $24,000 level, likely some exhaustion from profit takers following the monstrous rally. Momentum may persist further with the MACD continuing to diverge higher, however. Read more…..
Chart of the Day
Even though a bear case for gold is unlikely to happen, investors should not be sailing with their eyes closed and ignore the possibility of a pivot in fiscal and monetary policies, which would drag gold prices down, said Lobo Tiggre of the Independent Speculator.