Bitcoin Price Ready For a New Pop – Will It Do It Today?
Bitcoin price remains bid at current levels and eyes a move above $12,000. If we consider the current consolation as a continuation pattern, the price of Bitcoin has room to advance even higher, to $12,600 or beyond.
Momentum favors a higher Bitcoin price. Recent developments in the international arena show investors lose trust in central banks and more of them look for alternative options. Besides gold, Bitcoin feels like the right alternative.
Bitcoin Better Than Gold?
Recent events in the crypto arena showed increased adoption of Bitcoin from various investors. The most prominent of them, Square, was responsible for the bounce from the $10,000. Right after Square announced that it bought $50 million worth of Bitcoin or one percent of its total assets, the price of Bitcoin moved about ten percent in the following days.
A better understanding of Bitcoin comes from a direct comparison with its rival – gold. At the time of making long-term investment decisions, investors allocate some part of their portfolio to gold. This is particularly the case of endowments, as the main investment objective is to protect the value of their assets in the long term.
But if we look at the price of Bitcoin since inception and we interpret it in terms of gold (i.e., Bitcoin priced in gold), we see a clear, rising trend. It recently reached six ounces of gold and rising. Judging by this metric only, Bitcoin, at least so far, proves to be the better alternative.
Bitcoin Price Technical Analysis
The chart below shows the Bitcoin price consolidating in a triangular pattern. It looks like a possible pennant, and the measured move points to a new high when compared to the most recent one at $12,400.
To trade it, bulls may want to wait for the upper edge of the triangle to break before going long for $12,600 while having a stop-loss order at the lower edge of the triangular pattern. This way, the risk-reward ratio makes sense.