The world of finance is no stranger to upheavals, and with the emergence of cryptocurrencies, the industry is once again facing an existential threat. Three banks, Silicon Valley Bank, Silvergate Bank, and Signature Bank, have reportedly gone bankrupt, leading many to question whether crypto is to blame. However, experts argue that it is too soon to blame crypto for the downfall of traditional banks.
While the risks associated with crypto investments cannot be overlooked, the potential benefits of cryptocurrencies cannot be denied. With its decentralized nature, cryptocurrencies offer a level of security and efficiency that traditional finance cannot match. The current market trend seems to be in favor of cryptocurrencies, with Bitcoin’s recent surge in value.
According to data by CryptoQuant, Bitcoin still has the potential to increase in price until it hits the nearest resistance level in the price range of $29.2k – $32.3k. The Long-term SOPR indicator also suggests that Long Term Hodlers are still holding onto their Bitcoin and haven’t sold it in large quantities. The Net Unrealized Profit/Loss (NUPL) indicator shows that investors are in profit, but this profit has not been realized yet.
Technical analysis of Bitcoin using Elliott Waves also shows a great potential for an increase in price. By adding the 365-day and 60-day moving average lines to the chart, we can see that the blue line broke above the yellow line after a gap of 21 months. This pattern has been repeated many times since 2013, and each time Bitcoin has experienced strong bullish rallies.
While crypto may still be considered risky by some, its potential to disrupt the traditional financial system cannot be ignored. The current situation presents the first significant test for Bitcoin to prove its superiority as a store of value over traditional assets. However, macroeconomic uncertainty remains a potential disruptor to any scenario.
With markets being polarized with FOMO (Fear Of Missing Out) and drop fears happening simultaneously, it’s essential to consider all the possibilities before jumping to conclusions.
Santiment reports 2.4x more profit transactions than loss transactions on Bitcoin network since Wednesday as markets experience simultaneous FOMO and drop fears after Bitcoin jumps above $27k for the first time since June 12th.
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