Your favorite crypto news blog

Bitcoin Week in Review: Bears Attack Key Support, But Irresponsible Monetary Policy May Bolster Macro Outlook

Bitcoin 2019/12/15 22:30 by Cole Petersen

As we draw near the end of 2019, the events surrounding Bitcoin on a weekly basis are growing increasingly important, as how BTC trades within the next couple of weeks could set the tone for where it trends in the first part of the new year.

This past week, the markets saw interesting price action that largely favored bears, signaling that BTC could see some notable downside in the near-term. In spite of this, the cryptocurrency’s macro outlook still remains incredibly positive due to the continuance of irresponsible global monetary policy.

Welcome to Wick City: Bitcoin Faces Multiple Spikes That Result in Large Candle Wicks 

Over the past week, buyers on major cryptocurrency trading platforms like BitMEX sparked fleeting rallies that resulted in BTC forming massive wicks on its candle chart.

Some of these movements were incurred in a matter of mere minutes, with BTC’s price surging hundreds of dollars before fully retracing right back down to where the rally started.

Big Cheds, a popular cryptocurrency analyst on Twitter, spoke about these “shenanigans” in a recent tweet while pointing to the most recent wick formed by the cryptocurrency.

“$BTC #Bitcoin 1 hour – Lots of shenanigans,” he explained while pointing to the chart seen below.

While wicks like these are typically bearish signs that point to an underlying weakness amongst bears, Bitcoin has continued to trade sideways within the lower-$7,000 region in the time following these movements, which have not resulted in any massive price downturn.

BTC Holds Key Support at $7,000

Over the past several days and weeks, Bitcoin’s buyers have been ardently defending the crypto’s key support level at $7,000.

Currently, BTC is trading up marginally at its current price of $7,140, and it has been holding above $7,000 in the time since its latest dip, which occurred last weekend when it dropped to lows of roughly $7,020 before climbing slightly to its current price levels.

Macro Outlook for BTC Remains Strong 

Investors and analysts alike have long looked towards irresponsible economic policy as one impetus for Bitcoin adoption, as the crypto’s fixed supply runs counter to the massive amounts of money printing-induced inflation seen by fiat currencies.

Within the next 30 days, the Fed will be pumping a stunning $425 billion into the economy, a stunning number that confirms the need for a decentralized currency like Bitcoin in the eyes of digital currency advocates.

“FED pumping $425 BILLION of freshly printed fiat into the economy within 30 days. This is 3x the entire Bitcoin market cap. ‘EvEryThiNg’s fInE’ ‘THiS is nOt QE’… Buy Bitcoin,” Ivan on Tech, a popular figure within the crypto industry, noted in a recent tweet.

The coming couple of weeks will likely prove to be crucial for determining which direction Bitcoin and the aggregated crypto markets will head as the first part of 2020 kicks off.

Featured image from Shutterstock.

The post Bitcoin Week in Review: Bears Attack Key Support, But Irresponsible Monetary Policy May Bolster Macro Outlook appeared first on NewsBTC.

0 Like(s)

You should also read...

Bitcoin 03/12/19 22:00 by Cole Petersen
Bitcoin Bears Laying the Groundwork for Further Losses as Bulls Lose Momentum
After incurring tremendous volatility throughout the latter part of October and the majority of November, Bitcoin appears to have now entered a period of consolidation as its bulls and bears send BTC ...
Read More
Bitcoin 14/12/19 02:40 by Nick Chong
Why Bitcoin Price Crossing $10,000 is so Important: Top Investor Explains
For some reason or another, Bitcoin investors have long gravitated to round numbers. $1, that’s important. $100, make sure you watch that level. $1,000, all hands on deck. According to a promine...
Read More
Bitcoin 03/04/20 10:55 by Samuel Wan
Analysis: Bitcoin Could be Headed to $1,000 Amid Unexpected Liquidity Crisis
Since Black Thursday, which saw Bitcoin bottom at $4.6k on the day, the number one cryptocurrency has since been range-bound with strong resistance at the $6.8k level. Although it’s been able to...
Read More
Bitcoin 09/05/20 02:00 by Nick Chong
There’s a $30 Million Bitcoin Sell Wall That May Halt Any Rally Past $10k
The price action over the past few days has undoubtedly been positive for Bitcoin. After building momentum for weeks, the cryptocurrency finally burst past $10,000 this week, hitting a $10,100 high. ...
Read More
Bitcoin 19/05/20 00:59 by Marco Tulio
One Bullish Factor that Could Lead Bitcoin to Fresh All-Time Highs
Many analysts are warning of the arrival of possible inflation — driven by the uncontrolled impression of Fiat by the Fed as an economic measure to boost the economy hit by the COVID-19 pandemic—...
Read More