The financial world is no stranger to volatility, and with the advent of cryptocurrencies, the industry is once again facing an existential threat. The collapse of the three major banks Silicon Valley Bank, Silvergate Bank and Signature Bank has made many people question whether it is because of cryptocurrencies? However, experts say it is too early to blame the asset class for the failures of traditional banks.
first test #bitcoinAdvantages of being a store of value as a traditional asset $bitcoin https://t.co/G0GBA6YsKA
— Kyptos (@azcoinnews) March 18, 2023
While the risks involved in investing cannot be ignored, the potential benefits of digital currencies cannot be denied either. By virtue of their decentralized nature, cryptocurrencies offer security and efficiency unmatched by traditional finance. Furthermore, the current market trends seem to favor the coin, especially with the recent Bitcoin price increase.
According to CryptoQuant data, Bitcoin still has upside potential before hitting the nearest resistance in the $29,200 to $32,300 range. The long-term SOPR indicator also shows that long-term holders are holding Bitcoin and not selling heavily. The Net Unrealized Profit/Loss (NUPL) indicator shows that investors are making profits, but have not yet taken profits.
Source: CryptoQuant
Bitcoin technical analysis using Elliott Waves also shows significant upside potential. By adding the 365-day and 60-day moving averages to the chart, we can see that the blue line broke through the yellow line after a gap of 21 months. This pattern has repeated several times since 2013, each time Bitcoin has experienced a strong rally.
Source: Tradingview
While some still view cryptocurrencies as risky, their potential to disrupt the traditional financial system cannot be ignored. The current situation provides bitcoin with its first major test to prove its superiority as a store of value over traditional assets. In any case, however, macroeconomic instability remains a potentially disruptive factor.
Since the market is divided by FOMO (Fear of Missing Out) and Fear of Reduction, all possibilities must be considered before drawing conclusions.
Source: Santiment
Santiment reported that there were 2.4 times more profitable trades than losing trades on the bitcoin network as of Wednesday, as the market experienced FOMO and simultaneously eased fears after bitcoin first surged above $27,000 on June 12.
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according to Kyptos
