Even though Bitcoin had shown some positives until recently, there are reasons for concern, GlobalBlock sales trader Marcus Sotiriou said this week.
Sotiriou said Bitcoin closed another day above the 200-day moving average on Monday, while also completing a support/resistance flip of the $48,000 level and breaking out on the down-trending RSI indicator. While the trend may look bullish, he advised caution due to the decline in volume as well as high time frame resistance from April and May. Another concern is Google searches remain quite low, especially when compared to the last time Bitcoin was at this price point.
“This suggests that retail euphoria hasn’t entered the market yet and Bitcoin has a long way to go in this market cycle,” Sotoriou said. “I think that Google trends will reach an all-time high by the time the market cycle is at a peak.”
Positive long-term developments keep coming, with the latest one being software company Palantir stating it now accepts bitcoin payments and will hold all it receives. Palantir CEO Peter Thiel said they are preparing for a black swan event.
“I think this is because of concerns with the soundness of the dollar, due to central bank monetary policies,” Sotiriou suggested. “Palantir has added $50 million of gold bars to their treasury and the CFO has also declared that Palantir is considering an investment into Bitcoin as a treasury reserve asset.”
Need more positive signs? The second-largest mortgage lender in the US has announced plans to accept Bitcoin as payment later this year, and Wells Fargo has launched a Bitcoin fund”.
The president of Wells Fargo Investment Institute told reporters the institution now judges the cryptocurrency space has ‘hit an evolution and maturation of its development that allows it now to be a viable investable asset’,” Sotiriou said. That is quite the change from statements late in 2020 that they had little interest in the space.
More recent good news includes Coinbase’s plans to buy $500 million of crypto, and also use 10 percent of future profits to buy crypto. PayPal is letting British customers buy, hold, and sell cryptocurrencies starting this week.