Price Analysis

Bitcoin Lacks Traction Yet Powers “Financial Freedom”

Bitcoin has always been renowned as “freedom,” when it comes to deriving a one-word reply to the question— “What is Bitcoin?” Bitcoin gives freedom from the financial vows of which otherwise is bound with the rules and limitations of currency or Fiat, overall.

Lately, BTC and cryptocurrencies have been taking an edge over the traditional system of finance and trading after people have recognized the need for digital assets. The Coronavirus lockdown has given an opportunity to splurge in various aspects of finance and trading that can lead to a developed, easy and free way of investing without the hassle of the requirement of the minimum amount, entry, and exit.

This simplifies the term, “Financial Freedom,” with a limited supply, which is not the case with Fiat. It was just now when we heard about unlimited QE and printing of bills leading to hyperinflation when recovery will take over, eventually.

Moreover, the block reward halving leads to miners saving their positions, which otherwise would lead to splitting the profits between others who enter the mining process of Bitcoin. As the scarcity takes over, mining difficulties are likely to escalate as many miners would leave due to lesser income comparatively.

However, as per the economics rules of demand and supply, scarcity is that component, which eventually leads to a spike in trading price and is directly proportional to demand depending on the hype security creates.

Now, just when we talk about financial freedom from Fiat and currency, BTC is independent of any bond, and Bitcoiners celebrate Independence Day every day. Moreover, Bitcoin lovers and loyalists are free of taxes, bank charges, and the investment gains nothing but handsome interest.

Although, the price front of the security may appear weakening, but all these years, Bitcoin has gained enough fame and trust from all around the globe to lead to HODLing if not trading.

Bitcoin Price Analysis

Bitcoin News
BTC/USD Chart By TradingView

On the 24-hourly chart, Bitcoin is appearing flat within a trading range of $8.1k and $10.5k over the past ten weeks now. The price trend of BTC breached the uptrend after the market crash in March due to a lack of momentum against the US Dollar. Moreover, on the given 24-hour chart, BTC/USD is failing to retain support from the 50-day MA daily chart but retains support from 200-day daily MA. Moreover, the price trend of Bitcoin is hitting the lower 20-day Bollinger band due to lack of intraday traction.

Also, it was just yesterday when the coin retested supports below $9k for the 8th time from YTD; however, it held strong support at $8.9k and $8k when dipped further. The flattening curve has led to flattening of the technical indicators laid. The MACD line has turned flat due to lack of momentum in the intraday, and similarly, the RSI of the Bitcoin is lying at 44.67 with no trading extremities and momentum.

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Mehak Punjabi

Mehak Punjabi is a post graduate in MBA with specialization in Finance and has joined CryptonewsZ with a skill building view in the world of cryptocurrency and blockchain. She is dynamic and a quick learner with a hold on financial analysis.

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