Cardano USD Slides 2.26% as Technical Strength Diverges From Price Action Meyka
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Billionaire Mike Novogratz‘s firm Galaxy Digital has released some thoughts about the coming Bitcoin halving event. The firm identifies a shift from historic patterns. Generally, Bitcoin would break its earlier highs after a halving. However, this trend has changed. Galaxy Digital analyses the way the Bitcoin halving event is altering.
Galaxy Digital Notes Shift in Bitcoin Halving Trend
Galaxy Digital highlights that, unlike previous cycles, Bitcoin didn’t reach an all-time high following the latest halving. Bitcoin hit $73,737 on March 14, just before the forthcoming halving, when miners ‘rewards fell from 6.25 BTC to 3.125 BTC. That is now 5.9% lower—8 days prior to the halving. This particular circumstance contrasts sharply with the post-halving surges of the past.
On the morning of halving on 11 May 2020, Bitcoin had been trading at about $9,000. It reached a high of $69,000 in November 2021, the conclusion of the previous bear market. Galaxy Digital thinks the January launch of Bitcoin exchange-traded funds (ETFs) might have altered market conditions. These ETFs produced a brand-new demand anchor that drives Bitcoin price behavior in an alternative manner to previous halving events.
Mike Novogratz Links US Debt to Bitcoin Investment
The commentary additionally deals with bigger economic problems Novogratz addresses, such as the U.S. debt deficit. He wants substantial cuts in federal spending and greater taxes of the wealthy to help manage the mounting national debt. The national debt currently is $44 trillion; with no intervention, it may climb to $37 trillion. “This economic course demonstrates why Bitcoin must be considered an investment asset as financial instability increases,” Novogratz states.
The adoption of Bitcoin ETFs further stimulates the debate on Bitcoin’s worth. “These financial solutions have sparked a new wave of interest in cryptocurrency,” Coinbase states. Although the previous halving sample size is tiny and, therefore, predictions aren’t always true, business executives are hopeful. Ripple CEO Brad Garlinghouse actually predicted Bitcoin might hit $5 trillion in value this year.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
- Bitcoin diverges from the FX market and ignores the recent dollar’s strength
- Positive momentum builds up
- Possible pennant formation points to a move above $30k
The US dollar reacted to the recent monetary policy decision in the United States and the strong economic data for January. As such, it gained against its peers, with the best example being EUR/USD.
The exchange rate dropped from above 1.10 more than three big figures (i.e., three hundred pips). But Bitcoin ignored the dollar’s strength.
Indeed, the price action corrected a bit, but that was pretty much all. Instead of correlating with the FX market, Bitcoin diverges as bullish conditions remain. Moreover, momentum builds up, with another leg higher possible.
Possible pennant hints at a move above $30k
Bitcoin builds momentum just below the main resistance. Back in the summer of 2022, Bitcoin failed at $24k.
It tried its hand three times in a row, lost the momentum, and made a new lower low in the last months of the year. But the 2023 rally erased all that weakness.
The consolidation below the resistance looks like a triangular formation. More precisely, like a pennant.
A pennant’s measured move is equal to the distance prior to the pennant, projected from the pennant. In other words, it points to above $30k, should Bitcoin overcomes resistance.
If Bitcoin leads the way for the dollar, it should be used as a benchmark for the FX market. Therefore, one should not be surprised to see the EUR/USD making a new high for the year and erasing all the NFP losses.
For Bitcoin to trade above $30k the dollar should not diverge. Hence, the chances are high for the dollar’s strength in reaction to the January NFP report to be transitory.
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