After breaking the downward trend since the beginning of the year, Bitcoin and the other major cryptocurrencies have come to a stop. Is this the lull before a storm in price upwards or downwards?
Bitcoin is currently chopping sideways. Since breaking out of a wedge whose upper resistance was around $45,000, bitcoin has generally followed red day/green day on consequent days over a little more than a week now.
It might be said that it is forming a bull flag, and that the chop up and down within the flag is buying time for the daily RSI to reset by travelling to the oversold area. Once there, a new cycle to the upside could begin, and bitcoin could be heading into and upwards of the $50,000 level.
The traditional financial system is straining and stretching to breaking point after decades of printing fiat, which accelerated to a ridiculous level during the Covid pandemic, and now looks even more precarious due to the war in Ukraine.
More and more financial institutions are exploring the fantastic promise in crypto, and now even governments are looking to become the first to regulate and welcome cryptocurrency projects to their shores.
Fiat currencies are dead in the water, and it is only a matter of time before more countries, and their populations join the flight into crypto, and the relative safety of the sound money that is bitcoin.
It’s not all just about bitcoin either. The cryptocurrency sector is full of the most innovative and game-changing technological niches. DeFi (Decentralised Finance) is one such niche, and projects here are returning amazing yields to investors that banks and other traditional finance institutions could only dream of.
Currently, the total DeFi market cap is breaking out, and is recording a price of around $163 billion. The target for the breakout of the triangle is at $276 billion.
The total3 crypto cap is the value of the entire crypto market, with the exception of bitcoin and ethereum. It has also recently broken out, and is sitting at $815 billion. The measured target here is a hefty $1.3 trillion.
If you also take the leading layer 1 blockchains that are looking to usurp some of the value from ethereum, such as Solana, Avalanche, and Luna, you can see that all three are approaching potential big movements to the upside.
Of course, the market is the market, and all the above could face just as huge a price shock to the downside. However, the stars do appear to be aligning for crypto, and therefore April could be a big month ahead. Whatever happens, you can be assured that Crypto Daily will continue to report either conclusion.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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