Bitcoin price is facing stiff resistance near $62,200 and is likely to reverse quickly. The move will further extend the ongoing seven-month integration period. Despite this sideways price trend, the long-term outlook for BTC remains bullish. At a recent conference, BlackRock, the world’s largest asset manager, explained why it’s important to own Bitcoin (BTC) as the purchasing power of the US dollar has declined precipitously since 1913.
Bitcoin price today is trading at $62,000
After posting a 2.20% gain on Friday, Bitcoin is trading at $62,000 today. Weekends generally result in a lack of liquidity for obvious reasons. As a result, today’s cryptocurrency markets, including BTC, may experience increased volatility.
BTC price trades around $62,000
BlackRock: BTC could be a hedge against USD weakness
With Bitcoin price trading around $62,000, BlackRock explained why it’s important to own BTC at Brazil’s 2024 Digital Assets Conference. The asset management company explained that the purchasing power of the US dollar has fallen from $1 in December 1913, when the US established the Federal Reserve System, to $0.03 as of December 2023.
BlackRock: Purchasing Power of the US Dollar
In another slide, BlackRock showcased the characteristics of U.S. Treasuries by comparing them to gold and Bitcoin. Although cryptocurrencies are highly volatile, asset managers highlight how BTC serves as a global currency alternative due to its fixed supply, decentralized governance, and low transaction and storage costs. did.
Considering Bitcoin’s market capitalization is only $1.3 trillion, it’s still in its infancy, especially compared to gold’s $14 trillion and the US Treasury’s $25 trillion. Additionally, Bitcoin falls into the inflation hedge category, making it a viable alternative to the declining purchasing power of the US dollar.
BTC as a global currency alternative
BTC Price Prediction: More Pain Ahead?
The 3-day BTC price chart shows a clear attempt by the bulls to reverse the trend after months of lows and highs, followed by higher lows and higher highs in September. Bitcoin charts also show that the key level to overcome is $65.5,000, which has served as a key support and resistance level for the past seven months.
If this resistance level is overcome to the support level, it should trigger a rally to $70,000. Considering Bitcoin’s bullish Q4 price performance in the past, it would be no surprise to see BTC heading for a new all-time high (ATH).
BTC/USD 3-day chart
Bitcoin’s daily chart shows that the bulls are attempting to revisit the $63.9k to $65k resistance zone. Here, BTC buyers face a test of strength. Failure to overcome the above hurdles could result in a correction where the asset falls into the $60,300-$61,800 resistance zone. Here the bears will face difficulties. A break below the $60.3,000 hurdle should result in a 4% to 5% correction to the next major support level at $57.99,000 to $57.2,000.
BTC/USDT 1 day chart
Overall, the long-term outlook for BTC remains very bullish, with recent attempts to set even higher highs and higher lows in September. If this trend continues, Bitcoin price predictions will point to a new ATH. However, the daily chart suggests further downside movement is possible, especially if BTC fails to overcome the $65,000 resistance level.
Frequently asked questions (FAQ)
If Bitcoin price can overcome the $65,000 resistance level, it could rally to $70,000, but failure could lead to a correction to $60,300-$61,800 or even $57,9,000-57,200.
BlackRock views BTC as a hedge due to its fixed supply, decentralized governance, and low transaction costs, as opposed to the declining purchasing power of the US dollar.
BlackRock believes Bitcoin’s market capitalization ($1.3 trillion) is relatively small compared to gold ($14 trillion) and U.S. Treasuries ($25 trillion), indicating potential for growth and adoption. are.
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akash girimas
Akash Girimath is an engineer by training with a deep interest in the intricacies of the crypto market. As a senior reporter and analyst, he specializes in crypto analysis and contributes his expertise to prominent platforms such as AMBCrypto and FXStreet. In addition to his analytical work, Akash actively trades cryptocurrencies and manages a small crypto fund for friends and family. His role includes providing insightful market analysis and keeping readers informed about the latest trends in the world of cryptocurrencies. Follow him on Youtube , X and LINKedIn
Disclaimer: The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
