Bitcoin, just like gold, is in a position to withstand Fed’s tapering talks according to SkyBridge Capital’s co-chief investment officer, Troy Gayeski. During a telephone interview, the analyst stated,
“All fiat-currency alternatives – which have all gone through fairly recent substantial corrections – are in a much better place now to handle that eventual taper and gradual slowing of money-supply growth, than they were as they were making higher-highs after higher-highs.”
The two assets have constantly been compared, with some analysts terming Bitcoin as ‘digital gold’. However, analysts have varying opinions as to which of the two is a better bet. According to Goldman Sachs, Bitcoin is not an existential threat to precious metals, and both of them can coexist. On the other hand, Citigroup Inc sees crypto as being behind gold’s lesser shine.
BTC/USD technical outlook
Bitcoin is up by 1.44% at 36,315.02. Earlier on Monday, it was at an intraday low of 35,228.78. On a two-hour chart, it is trading along the 25-day EMA and slightly below the 50-day EMA. I expect the digital currency to rise to 37,355, which was a key resistance level on Friday. Above that, the next target will be at the psychological level of 38,000, which was a significant resistance level in the past week.
On the other hand, Bitcoin may drop to find support at Monday’s low of 35,267. Below that, it may reach May’s low of 34,184.