Is it Still Worth being Bullish on Bitcoin?
The Current State of Bitcoin: Uncertainty and Potential
The current state of Bitcoin is characterized by a phase of uncertainty and reduced volatility where the price is trapped between significant support and resistance levels, namely $60,000 and $72,000.
However, bullish views, supported by prominent figures like Jurrien Timmer, and discussions on the modern economic system sparked by Larry Fink, are prompting reflections on Bitcoin’s future role as an alternative store of value in an increasingly unstable global context.
While the short term might seem uncertain and dominated by sideways movements, the long-term prospects for Bitcoin appear to remain positive, supported by institutional adoption and the growing perception of the cryptocurrency as “exponential gold.”
Technical Analysis on Bitcoin (BTC/USD)
The price of Bitcoin (BTC/USD), after hitting the $70,000 level, surprised many investors by experiencing new declines.
Currently, compared to the month’s highs, the price of BTC/USD is down by over 10%.
This scenario has caused some discontent among crypto investors, as the price of the “father of crypto” has been trapped in a sideways range between $72,000 and the approximate minimum of $60,000 for months.
These two levels act as real barriers, respectively in selling and buying, compressing the price volatility into a range that many believe could turn out to be an unpleasant distribution cluster rather than accumulation.
Adding to the complexity, the number of put options compared to calls is increasing, along with the open interest.
This indicates a growing interest in the derivatives market for position hedging, without excluding the possibility of opening short positions.
This dynamic suggests a perception of uncertainty and a potential increase in bearish pressure on the market.
Fundamental Analysis: What Lies Ahead for Bitcoin?
Despite the current technical scenario, bullish fundamentals are certainly not lacking.
One of the most resonant voices is that of Jurrien Timmer, director of Global Macro at Fidelity, who has likened Bitcoin to “exponential gold.” According to Timmer, Bitcoin represents a potentially improving solution compared to gold, the ultimate safe haven asset.
Its ability to act as a store of value, in a context of growing economic and geopolitical turbulence, could make it an increasingly sought-after asset.
Another consideration that has sparked much discussion online regarding Bitcoin’s role comes from Larry Fink, CEO of BlackRock.
Fink has discussed the “growth dilemma” in the global financial system, expressing the need for a different economic approach.
Although not directly mentioning Bitcoin, his remarks have fueled a lively debate on social media about the role of cryptocurrencies in the modern economic system.
The introduction of Bitcoin exchange-traded funds (ETFs) has further shown a certain convergence of traditional institutions towards the decentralized market, offering food for thought to maximalists.
