The $7,800 ceiling that we noted on Tuesday (https://telegra.ph/Tuesdays-Inferno-market-report-06-05) remains intact, with bitcoin bumping up against it once again yesterday, before dropping back. If the same pattern continues to play out this will paint a higher low, before bitcoin once again takes a run at that resistance level – and, this time, hopefully breaks through it. As we also noted on Tuesday, the deadline for a significant move is approaching, since the long-term rising support line will place more and more pressure on the price as it pushes towards $7,800. One way or another, the days of sideways movement will soon be over.
On Twitter, Armin van Bitcoin paints this bullish picture for bitcoin, noting the months-long consolidation: https://twitter.com/ArminVanBitcoin/status/1004011244238594048. It’s also interesting that Google searches for ‘bitcoin’ (which have historically correlated well with price) are down 75% from January: https://www.investopedia.com/news/google-searches-bitcoin-down-75/. That’s worth watching as an indication of what might happen next.
Meanwhile, the fundamentals are pretty good. Venezuelans are buying more bitcoin, though that shouldn’t be a surprise for a country with 25,000% inflation: https://cointelegraph.com/news/bitcoin-buying-on-the-rise-again-in-venezuela
And the prospect of ‘Italeave’ (Italy exiting the Eurozone) has prompted renewed awareness of bitcoin as a safe haven asset: https://bravenewcoin.com/news/italexit-prompts-speculation-that-bitcoin-is-a-new-safe-haven-asset/
That’s all for now! Stay tuned for the next Inferno post.
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