Bitcoin New Support at 100,000Bitcoin’s trend has been growing from strength to strength — and it’s likely to stay that way. Why?
This trend isn’t driven purely by speculation; it’s supported by strong fundamental reasons.
One of the most widely debated topics in finance today is the comparison between Bitcoin and gold. While both are viewed as stores of value, their long-term roles may diverge significantly.
Yes, gold and bitcoin have been moving up in near perfect synchronization with inflation.
Gold is traditionally seen as an inflation hedge, and since June 2022 — when inflation peaked at 9% — we’ve seen both gold and Bitcoin trend higher up to the present day.
Instead of asking why the Fed isn’t cutting interest rates despite the decline in CPI, perhaps we should ask: why the Fed prefers to maintain rates at the current level. What are they seeing with the data and the developments?
When both gold and Bitcoin hold steady at these elevated levels, it suggests that investors still believe the threat of rising inflation remains valid.
In all bull markets, the path is never straightforward — it’s often jagged along with volatility.
What distinguishes a continuing bull market - is the formation of higher lows along its timeline.
However, like gold which we recently discussed, Bitcoin may be approaching a medium-term resistance.
In this first week of this year tutorial, we observed an inverted hammer in the last month of 2024, suggesting a potential correction in Bitcoin, but yet seeing support at around 82,000 level.
As anticipated, the inverted hammer was followed by a correction here toward our support level at around 82,000, with some false breaks along. From that point, the market resumed its upward climb.
Now, it appears to be encountering resistance again.
Still, as long as the market continues to form higher lows, and the threat of rising inflation still remain, the bull trend should remain intact.
This is how the projection might look when mapped with a trendline.
We observed that the primary parallel trendline is reacting in relationship to each other. Next I would like to explore its secondary channel.
Please don’t interpret this as a literal path. Instead, I hope it serves as a guideline to help you form your own projections as the market evolves.
Gold is preferred by older generations, central banks, and conservative investors. Deeply entrenched in traditional finance and cultural value systems.
Cryptocurrency has a rapid adoption by younger investors, tech-native users, and institutions. Millennials and Gen Z are more likely to trust cryptographic assets than governments or fiat systems.
I will keep an open mind to both inflation hedge asset and their instruments.
Its video version for this tutorial:
Disclaimer This analysis is based on technical studies and does not constitute financial advice. Please consult your licensed broker before investing.
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