Opinions
Crypto Talk with Terence
Bitcoin (BTCUSD)
CRYPTO:BTC
RISKY
Feb 09, 2022
Stock price when the opinion was issued
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CRYPTO UPDATE
The triangle we spotted on Bitcoin was very effective and broke its resistance with a nice candlestick that made it take almost 6% in one day.
The take profit target is still located at $56,000, close to an important supply area (many sell orders pending in the order book). The price is currently operating a pull back on the resistance zone it broke recently, this is perfectly normal and occurs in about 60% of cases (Chartist analysis, by Francois Barron), this could also be a very good entry for investors who missed the low of the triangle and its breakout (we can also wait for the breakout of the last high.
Investors who took position at the low or middle of the triangle currently have a nice profit (+20-10% at the time of writing, +30-20% at the high), and can expect much more, if the pattern materializes until the end. The most sensitive (and they are right) to money management have already moved their stop loss beyond their entry point, and can no longer, regardless of future developments, lose money.
It is interesting to note the high correlation between Bitcoin and other cryptos. Indeed, since the break of the triangle on Bitcoin, the main other cryptos have all experienced interesting gains this week, including Ethereum (which also broke a triangle from above), and Solana (+60% for a week). The case of Solana is very interesting because we had two chartist figures, a triangle and a triple bottom that led to this rise of 60% in 1 week and 80% since March 11.
Although probabilistic, chartist analysis remains an extremely powerful tool to evolve with more confidence in the chaotic financial markets, no matter what the detractors say, provided of course to retain this elementary but crucial rule that is missing to 90% of investors, and allowing to extend its life (in the financial markets) on the long term: to have a perfect control of its money management.
VOLCANO BONDS OF EL SALVADOR
On September 07, 2021, El Salvador formalized BTC as its national currency. Since then, President Nayib Bukele has not stopped encouraging and announcing new and promising projects in the world of crypto-currencies.
One of these projects is the use of BTC to issue government bonds.
Indeed, in November 2021, the president announced the upcoming creation of a futuristic city, insisting that the financing of this structure should be done through the issuance of bonds: Volcano bonds.
According to local sources, El Salvador is almost ready to issue bonds. The Minister of Finance said that the preparation phase of the issue should be completed by March 20, 2022. When this phase is completed, the country will be fully ready to issue its bonds, which will be worth $1 billion.
It is important to point out that the big difference of these bonds is that they will be able to be purchased in BTC or other cryptocurrencies, democratizing access to all participants of the crypto ecosystem.
The bonds will also be listed on the stock exchange and accessible to anyone willing to invest a minimum of $100.
After making history as the first country in the world to nationalize BTC, El Salvador is taking another step forward by becoming the first country to issue debt via crypto-currency. Not missing thus to taunt the IMF which had tried to force the reversal of the president towards conventional currencies, but had only reinforced his desire for sovereignty for his country.