Opinions
Crypto Talk with Terence
Bitcoin (BTCUSD)
CRYPTO:BTC
RISKY
Mar 24, 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.
BITCOIN MINING, A STEP TOWARDS ENERGY INDEPENDENCE
In the U.S., more and more political actors are promoting the creation of a clear regulatory framework for cryptocurrencies. Many of them also argue that cryptocurrency mining would be an opportunity for the development of the energy sector in the US.
Many political leaders have understood, far from the usual clichés, the huge potential that cryptocurrency mining represents. For example, the city of North Vancouver, Canada, will be the world's first Bitcoin-powered city by the end of 2022, with an innovative low-carbon heating solution. In the United States, Congressman Pete Sessions says the mining farm industry could help America achieve energy independence.
It's true, in fact, that mining already prevents the waste of excess energy from already existing structures, but beyond that, the revenue from crypto mining provides funding for future energy facilities.