Bitcoin Hovers Near $48k Ahead of Fresh Key US Inflation Data
The main idea of Bitcoin is to develop a programmable agreement without the intervention of a third-party association. Many investors and ordinary people consider it a form of asset that will increase in value in the future. Moreover, the Bitcoin asset distribution helps the company raise money for a secure environment. After the pandemic, Bitcoin is the only source of earning for many investors.
It is the best way to transact money without delivering any sensitive information. You can enjoy the financial anonymity that most digital payment solutions fail to offer. It acts more like a digital payment that hackers cannot breach. Besides that, you have zero inflation risk with BTC because no centralized association regulates it, and it cannot even decrease or increase a country’s purchasing power. Moreover, no one can freeze, claim or charge tax on your Bitcoins.
Payment with BTC is much quicker than a traditional credit/debit card transfer. Traditional digital payment may take up to seven days in case customers ask for a chargeback.
Bitcoin has been on a rollercoaster ride over the last few years. However, what is the main reason for this downfall? Is it a bubble burst or a new investment opportunity?
Let’s analyze the price chart and find more details about the Bitcoin projection trends!
At the time of writing this analysis, the BTC price is $48K. On the daily price chart, it is showing bearish momentum. After reaching the new ATH of November, it is consolidating in the range of $53K, but on December 04, it has broken the support level. It might create a new support level or come to the next support level around $41K.
On the daily chart, RSI is very weak, below 40. MACD is also reflecting bearishness. The red and blue lines are in the negative zone and show long-term bearishness. The Moving Average line is going downwards in the chart, following the candlesticks. Even on the Bollinger Band, the last few candlesticks are in the lower half of the BB, below the baseline. It is clearly visible that volatility in the Bitcoin price chart is increasing.
What is the reason for this volatility? Is it uncertainty or a beginning of a new bullish run?
Though many investors think that the BTC price will reach the $100K level this year, it seems a little complicated. The reason is inflation and profit booking. All the world’s major indices are down due to increased interest rates and inflation. Many countries are regulating cryptocurrencies, so the uncertainty and volatility are increasing.