After a lackluster August and September, Bitcoin surged by approximately 30% in October. Bitcoin’s October spike pushed the cryptocurrency above two important technical levels that I discussed in August ($11,000 and $12,500), which is a sign of strength. The next most important technical hurdle to break is $14,000; if Bitcoin can break above that level in a decisive manner, there is very little meaningful resistance until the all-time high of approximately $20,000.
As I’ve been showing, a massive wedge pattern formed in Bitcoin over the past several years that may indicate a significant move ahead. Bitcoin broke out of the wedge pattern in July, took a breather for a couple months, and is off to the races again. A convincing break above $14,000 – which is a key psychological level and marked the highs in 2019 – would give an additional bullish confirmation signal.
For the past several years, I’ve been very optimistic about the outlook for Bitcoin and other safe-haven assets like gold and silver. Because I had been correctly expecting a serious economic crisis, I have favored safe-haven assets over risk assets such as stocks and real estate. I still believe that these safe-havens will thrive in the years to come as central banks continue to flood the world with liquidity in an attempt to prop-up the debt-ridden global economy.
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