empty
16.10.2023 02:47 PM
Bitcoin not meant to replace money

This image is no longer relevant

Flagship cryptocurrency Bitcoin began a new bearish sequence, aiming to hit $24,350 – $25,211. We assumed that the cryptocurrency could rise to the Senkou Span B line on a 24-hour timeframe and this actually happened. The first rebound from the indicated area encouraged a rally by $5,000 within just a few days. A second bounce from this area resulted in a $2,500 gain within 19 days. We believe that such a dynamic allows us to suppose that the correctional scenario will continue. Moreover, the digital asset failed to overcome the Ichimoku cloud. Today, Bitcoin rose in price by $800 within a couple of hours. But what is $800 for the number one cryptocurrency in the world? This move mean a minor growth. Market noise, nothing more.

While the whole world awaits a new rally and predicts Bitcoin's further recognition as a global currency, analytics company Glassnode said that about 10.5 million Bitcoin tokens have not moved anywhere for 5 years. It means that more than half of the Bitcoin coins simply lie in the wallets of hodlers or are irretrievably lost. Imagine, for example, that half the supply of the US dollar lies under the cushions of a few millionaires and billionaires and does not take any part in the economy. Also imagine this: billionaires continue to accumulate dollars under their pillows, and there is less and less currency in circulation. What will happen? It starts to rise in price. Other currencies can grow in the same way. It turns out that the supply is so small, and the amount of money withdrawn is so large that there is simply not enough for daily payments.

This image is no longer relevant

Naturally, in such a situation, the central bank will step in and print more money. Many Bitcoin fans consider this accommodative monetary policy to display a huge disadvantage of fiat money. However, in this case, the central bank ensures the stability of the currency and makes sure that it is enough for all participants in the economy. What's wrong with that? And what will perform similar functions in the case of Bitcoin? Nothing. Hodlers and institutional investors can continue to buy and withdraw coins from circulation, pursuing one single goal: to provoke an even greater growth of Bitcoin. There is no question of being a substitute for money.

On the 24-hour timeframe, Bitcoin rebounded from the level of $25,211 and tested the Senkou Span B line. Since a dip followed from this line, it was possible to sell the cryptocurrency with a target of $24,350-25,211. Further selling will be possible if the price passes this area, hitting a target of $19,607. It will be possible to think about buying when there is a dip from the area of $24,350-25,211, but this will be the third drip, which may be even weaker than the second. We believe that the correction scenario remains, and Bitcoin will fall even lower until the end of 2023.

Paolo Greco,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

BTC/USD Analysis. March 27th. Bitcoin lacks growth potential

The wave structure on the 4-hour chart of BTC/USD is quite clear. After completing a bullish trend composed of five full waves, a corrective downward phase has begun, currently taking

Chin Zhao 08:31 2025-03-27 UTC+2

Trading Recommendations for the Cryptocurrency Market on March 27

Bitcoin and Ethereum are facing challenges in maintaining their upward momentum. However, this appears to be more of a reaction to Donald Trump's latest political statements—which have

Miroslaw Bawulski 08:06 2025-03-27 UTC+2

Technical Analysis of Intraday Price Movement of Filecoin Cryptocurrency, Thursday March 27, 2025.

By successfully breaking below the lower line of the Rising Wedge channel of the Filecoin cryptocurrency on its 4-hour chart and its price movement is now stuck

Arief Makmur 06:55 2025-03-27 UTC+2

Technical Analysis of Intraday Price Movement of Ethereum Cryptocurrency, Thursday March 27, 2025.

If in the next few days there is no significant strengthening, especially if it breaks through and closes above the level of 2549.05 on the daily chart of the Ethereum

Arief Makmur 06:36 2025-03-27 UTC+2

Bitcoin hovering before spike above $90,000

While you're mulling over whether to buy Bitcoin or not, the world's largest asset management leader, BlackRock, is actively increasing its ETH holdings for its tokenized fund, BUIDL. This move

Jakub Novak 09:39 2025-03-26 UTC+2

Trading Recommendations for the Cryptocurrency Market on March 26

Bitcoin and Ethereum continue to show active growth but face challenges in overcoming major resistance levels. Yesterday, Bitcoin pulled back after reaching $88,400 and is currently trading around $87,600. Ethereum

Miroslaw Bawulski 08:22 2025-03-26 UTC+2

Why Bitcoin's fall not over yet

Despite the recent growth of the cryptocurrency market, larger upward prospects and a return of Bitcoin to the $100,000 mark remain unrealistic for now. This is evidenced by data from

Jakub Novak 10:00 2025-03-25 UTC+2

Trading Recommendations for the Cryptocurrency Market on March 25

Bitcoin and Ethereum have reached significant levels but failed to hold them. Bitcoin climbed to $88,600 before pulling back and now trades around $86,600. Ethereum also corrected after another failed

Miroslaw Bawulski 08:26 2025-03-25 UTC+2

Bitcoin and Ethereum show signs of revival

Bitcoin and Ethereum are back in recovery mode after traders took a pause over the weekend. While the latest movement hints at a return of bullish sentiment, it is still

Jakub Novak 12:27 2025-03-24 UTC+2

Wave analysis of BTC/USD on March 24. Bitcoin going on with its correction

The BTC/USD pair has managed to halt its recent decline. The current wave pattern now suggests a potential short-term upside for the world's leading cryptocurrency. Wave structure signals a correction

Chin Zhao 10:01 2025-03-24 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.