ON THE MOVE - Bitcoin has been on the move and is starting to turn heads. The crypto-currency has broken to fresh multi-month highs and is also fast approaching a retest of the record high from 2013. This has many out there wondering if this is the start of the next big trek towards a retest of the record high from November 2013 at 1165. So what’s been going on out there that has the currency back in such heavy demand?
STRIDES - Well, for one, we’ve certainly seen Bitcoin solidify its place in the crypto-currency world over the past several months. The currency is working its way into business models across the globe and is quickly becoming a legitimate alternative option for many companies.
GLOBAL MACRO - But there’s more to it than just that. The global macro-economic backdrop is also supportive of Bitcoin. With inflation at record lows and now likely to tick up, and with stocks overextended and likely on the verge of collapse in a world where emergency monetary policy is no longer there to support financial markets, investors are flocking to viable alternatives and Bitcoin is certainly a solid contender to benefit from this flow.
EARLY ADOPTERS - Emerging economies like China and Venezuela have been early adopters of the crypto-currency and the model has been proven to be quite effective to the point where it is catching fire elsewhere. Certainly, at this stage in the game it is worth keeping an eye on this market and we will continue to monitor developments closely.
CHARTS - Technically, the break to a fresh yearly high through 780 does open the door for a measured move extension back towards the record high. As such, buying is the preferred strategy and we like buying on any overextended interday dips. Ultimately, only back below 500 compromises the highly constructive outlook.
You can follow the Bitcoin Live Chart for price action.