Bitcoin has short term problems, but the future is still bright: Analyst

While Bitcoin had shown some positive results until recently, there is cause for concern, according to GlobalBlock Sales Trader Marcus Sotiriou said this week.

Sotiriou said Bitcoin closed another day above the 200-day moving average on Monday, while also making a support / resistance reversal of the $ 48,000 mark and breaking out of the downtrend on the RSI indicator. While the trend may look bullish, it advised caution due to the decline in volume and high timeframe resistance in April and May. Another concern is that Google searches remain quite low, especially when compared to the last time Bitcoin was at that price.

“This suggests that the retail euphoria has not yet entered the market and that Bitcoin still has a long way to go in this market cycle,” Sotoriou said. “I think that Google trends will hit an all-time high when the market cycle peaks.”

There are still positive long-term developments, with the newest software company Palantir claiming it will now accept Bitcoin payments and keep whatever it receives. Palantir CEO Peter Thiel said they are preparing for a Black Swan event.

“I think this is due to concerns about the solidity of the dollar due to central bank monetary policy,” suggested Sotiriou. “Palantir has added $ 50 million in gold bullion to its coffers, and the CFO has also stated that Palantir is considering investing in Bitcoin as treasury reserve assets.”

Do you need more positive signs? The second largest mortgage lender in the US has announced that it will accept bitcoin as payment later this year, and Wells Fargo has launched a bitcoin fund.

The president of the Wells Fargo Investment Institute told reporters that the institution now believes that the cryptocurrency space has “reached an evolution and maturation in its development that now enables it to be a viable investable asset,” “Sotiriou said. That’s quite a change from what they said in late 2020 that they had little interest in the room.

Recent good news includes Coinbase’s plans to buy $ 500 million in crypto and also use 10 percent of future profits to buy crypto. PayPal lets UK customers buy, hold and sell cryptocurrencies starting this week.

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