The price of Bitcoin continues to remain trapped within a worrying range. Despite this, some fundamental evidence could fuel new bullish winds.
![Should you still be bullish on Bitcoin?](local/cache-gd2/0d/c455ec9f438a01aed158181664f692.jpg?1725558593)
The current situation of Bitcoin is characterized by a phase of uncertainty and reduced volatility in which the price appears to be trapped between significant support and resistance levels, respectively $60,000 and $72,000. However, the bullish opinions, supported by prominent figures such as Jurrien Timmer, and the discussions on the modern economic system sparked by Larry Fink make us reflect, and a lot, on the role of Bitcoin in the future as an alternative store of value in a context increasingly unstable global.
Although the short term may appear uncertain and dominated by sideways movements, the long-term outlook for Bitcoin would 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 touching the $70,000 level, surprised many investors by recording new decreases. Compared to the month’s highs, the price of BTC/USD is down by more than 10%. This scenario has generated a certain discontent among crypto investors, as the price of the "father of crypto" has been trapped for months in a lateral range between $72,000 and the approximate minimum of $60,000. These two levels represent real barriers, respectively for sale and purchase, compressing price volatility into a range which, according to many, could prove to be an unpleasant cluster of distribution rather than accumulation.
To make the picture even more complex, the number of put options compared to call options is increasing, along with open interest. This indicates a growing interest in the derivatives market for hedging positions, 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.
- BTC/USD, 1D
- Source: Baha.com
Fundamental analysis: what’s next for Bitcoin?
Despite the current technical scenario, there is certainly no shortage of bullish fundamentals. One of the most resonant voices is that of Jurrien Timmer, director of global macro at Fidelity, who compared Bitcoin to " exponential gold ". According to Timmer, Bitcoin represents a potentially better solution than gold, the safe haven par excellence. 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 caused a lot of discussion on the Web regarding the role of Bitcoin is that of Larry Fink, CEO of BlackRock. Fink discussed the " growth dilemma " in the global financial system, expressing the need for a different economic approach. Although he did not mention Bitcoin directly, his speech fueled a lively discussion on social media regarding the role of cryptocurrencies in the modern economic system. The introduction of Bitcoin exchange-traded funds (ETFs) has further demonstrated a certain rapprochement of traditional institutions towards the decentralized market, offering food for thought to maximalists.
Original article published on Money.it Italy 2024-06-19 16:48:01. Original title: Ha senso continuare ad essere rialzisti sul Bitcoin?