Pantera Capital: "That's Exactly Why One Should Get out of Paper Money and Into Bitcoin" – Price Analysis, 3 Aug 2020
On July 29th, Pantera Capital, one of the leading investment firms and hedge funds focused on cryptocurrencies, released a letter to its investors, saying that "the United States printed more money in June than in the first two centuries after its founding. Last month the U.S. budget deficit — $864 billion — was larger than the total debt incurred from 1776 through the end of 1979".
That's why Pantera Capital recommended to its investors to switch from paper money to Bitcoin:
At the end of July, prominent cryptocurrency enthusiast PlanB posted a tweet, in which he wrote that Bitcoin won't drop below $6,000 any more:
PlanB's opinion is based on the fact that Bitcoin has never dipped below the 200 Weekly Moving Average (WMA) and the current level of the 200 WMA is already above $6,000.
After the solid price increase during the last week, the current week starts with price consolidation in the cryptocurrency market. At the time of writing, according to Coin360.com, one Bitcoin costs €9,483.57 (-0.65%), one Ethereum – €324.79 (+1.45%), and one Litecoin – €48.72 (-1.37%):
Source: Coin360.com (Daily crypto market performance)
Now let's have a look at the price charts of the major cryptocurrencies against the euro.
In the daily time frame (1D), BTC/EUR has exited the descending channel (downtrend), in which it had stayed for almost one year:
According to the technical analysis theory, this breakout has put an end to the downtrend.
In the 4-hour chart BTC/EUR is forming a Rising Wedge:
We believe that the price chart will remain within the wedge at least until the end of the week. Therefore, we consider the lower line of the wedge as a price support level and the upper line of the wedge as a price resistance level.
In the monthly time frame (MN) ETH/EUR formed a solid bullish candlestick in July:
Interestingly, the closing price in July 2020 significantly surpassed the closing price of the previous local high in June 2019. We think that this is an important bullish signal, indicating that the bulls are gaining traction in the monthly time frame.
In the daily time frame (1D) the price chart of Litecoin is testing the upper line of the Falling Wedge:
In our estimation, if the bullish sentiment in the cryptocurrency market remains, then the breakout attempt in the price chart of LTC/EUR will be a successful one, and it will be the end of this bearish formation, namely the end of the Falling Wedge.
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