Bitcoin may be on the verge of an explosive growth — opinion

Bitcoin is in the same league as gold and silver.
The technical picture implies the sell-off before the strong recovery.

Tanya Abrosimova Independent Analyst

Bitcoin may be on the verge of an explosive upside move, the founder of Hayman Capital Management Kyle Bass believes. He expects the first digital currency to follow the lead of gold and silver on their move to new highs as global money printing policies will force investors to seek alternative tools to protect their capital from inflation.

Last year, Bass suggested that Hong Kong millennials used Bitcoin for the purpose of capital flight. How this asset will serve as a hedge against inflation caused by massive monetary injections.

In a recent tweet he put Bitcoin in the same league as gold and silver:

Silver, Gold, Bitcoin, etc all look to be ready to make explosive moves higher given the sheer amount of money printing going on around the world. Here is a chart or front-month silver going back 10 years.

BTC/USD: Technical picture

Bitcoin was locked in a tight range for too long; however, the bulls woke up and pushed the price of the first digital asset above the local resistance of $9,200 and towards 50-day SMA at $9,350. At the time of writing, BTC/USD is changing hands at $9,400, having gained over 2.6% since the start of the day.

Now the local support is created by the above-mentioned 50-day SMA. Once it is out of the way, the sell-off is likely to gain traction with the next focus on $9,230 ( the middle line of the 1-hour Bollinger Band) and the broken channel resistance at $9,200. The major bearish target is created by psychological $9,000, reinforced by 100-day SMA and the lower line of the daily Bollinger Band.

BTC/USD 1-hour chart

Author

Tanya Abrosimova

Independent Analyst

EUR/USD looks weak below 1.1800

EUR/USD has slipped back under pressure, breaking through the 1.1800 support and drifting towards the weekly lows near 1.1770 ahead of the opening bell in Asia. The move reflects renewed strength in the US Dollar, with steady geopolitical tensions keeping its demand firm. Moving forward, the release of the German labour market report and flash inflation figures should keep European investors entertained on Friday.

GBP/USD threatens the 200-day SMA near 1.3440

GBP/USD rapidly leaves behind Wednesday’s strong advance, coming under heavy pressure and retesting the 1.3440 zone, where the critical 200-day SMA is located. Cable’s deep pullback follows the strong gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold trims gains, slips back to around $5,170

Gold is now facing some downside pressure, hovering around the $5,170 region on Thursday. The yellow metal surrenders part of its earlier gains on the back of the resurgence of the buying interest in the Greenback. In the meantime, geopolitical tensions in the Middle East continue to limit the downside potential for now.