P95G Market Weekly Report — Week of 05/24/2020
The Bitcoin price was unable to break the $10,000 barrier last week and continued to show signs of a reversal after forming a lower high near $9,300. The BTC price is settling at around $9,200 at the moment.
The current support of the BTC price is at $8,900. If the price drops below $8,900, it will likely test the next support at $8,500 and then bounce back to the $9,000 level. The market will likely go sideways unless the volatility increases after testing the support level. If the volatility continues to increase, the price may experience further drop to $8,000.
Review of the week:
Anthony Pompliano, the co-founder of Morgan Creek Digital, pointed out that the driving forces behind real estate and gold (Interest rates dropping, the excess printing of the US dollar, and additionally the recent halving) at the moment would end up being the major drivers and catalysts of Bitcoin, as in when it takes charge.
Aleks Svetski, CEO and co-founder of Bitcoin investment platform Amber, said Bitcoin needs time to solidify its position as an effective investment option in the eyes of the public. This is not a technological revolution, he adds, but a currency revolution that traditionally takes centuries to manifest, whereas in the digital age Bitcoin may take decades to achieve.
Messari’s latest report shows the potential of Bitcoin in the market as it is the first time an asset has been created on a computer-based sovereign network. The concept of sovereignty underpins many important properties of Bitcoin. This asset is the only absolutely scarce currency asset in the world, and this particular feature is ensured by a global network of diverse players running all the Bitcoin nodes. Unlike other legal-currency systems today, it is unlikely that any geopolitical tensions surrounding larger economies will limit the value transfer of Bitcoin. Bitcoin is not portable compared to other value-storing assets, such as gold and silver. Unlike gold and silver and other monetary metals, Bitcoin can be sent around the world in a matter of hours, and can be stored safely by individuals with a mnemonic. While it’s hard to foresee the coming price volatility of Bitcoin, it’s hard to deny the currency’s strong fundamentals and resilience in the face of the current economic crisis.
Disclaimer: The above market commentary is based on technical analysis using historical pricing data, and is for reference only. It does not serve as investment or trading advice.
Point95 Global Ltd (“P95G”) has been at the forefront of digital asset trading since 2017 in providing “best-in-class” OTC brokerage, digital asset management, liquidity provision, and execution services. We also founded Coinviva Exchange, a digital asset exchange.
