Bitcoin breaks through 16,000, market value approaches that of Ant Financial, a safe haven after the US election?

The market value of Bitcoin is close to 3,000 US dollars, which is almost the market value of Ant Financial. For such a large-cap stock, a 10-point increase is not much. Ethereum, the second largest stock by market value, also has a decent increase. No one has mentioned Bitcoin and Litecoin for a long time. This time Litecoin is following closely by 8 points.

UNI, a popular DEFI some time ago, rose by 15%, and LINK rose by 5%. Even the storage sector, which had been falling and rebounding and continued to fall, saw a 2-point increase in the leading FIL, which began to show signs of stability.

Previous articles have also analyzed that Bitcoin and Ethereum are the real estate of digital currencies. They have been tested and are suitable for long-term holding. New entrants will also give priority to these two currencies.

(Image from AICoin)

2 Bitcoin fundamentals are excellent

Biden’s victory in the US election has been confirmed, but most people believe that Trump will not give up. There are still more than two months before the handover in January next year. No one knows what Trump will do or even whether the United States will be torn apart because of it. Therefore, digital gold Bitcoin seems to have some safe-haven value again.

Ethereum 2.0 will be launched on December 1st. Sharding can greatly improve throughput and reduce congestion fees. Therefore, Ethereum also began to soar to nearly $440. From the beginning of the rise of Bitcoin on September 5th, it has been exactly two months now. The biggest increase is still in Bitcoin and Ethereum. After all, in the early stage of the bull market, they are all veterans, and value coins still dominate.

Conclusion: Everyone knows that the recent buyers are those institutions. One reason is that they are large in size and cannot buy small currencies. The other reason is that the value is stable and the backtest is small. The capital flow is obviously BTC and ETH.

3 K-line analysis

For weekly K-line, we can only choose the old exchange Bitstamp. Mentougou has collapsed, BTCC has failed, and the current three giants are all new and lack historical data.

From the March currency crash to now, Bitcoin has been rising all the way and has broken through the weekly central axis. From more than 2,000 to more than 10,000 now, it has finally formed a decent large central axis. This will be a favorable support for the current bull market.

The daily K-line shows: this round of rebound from the currency disaster fluctuated upward and broke through the daily center. There was a slight overlap in the breakthrough process. If we consider it as a consolidation, according to the MACD yellow and white lines, no divergence was formed.

The 30-minute K-line shows: a 30-minute center is formed and a strong breakthrough is made. Judging from the current length of the MACD column, no divergence is formed and there will be no reversal.

The 5-minute K-line shows that the trends at both ends of the 5-minute center have not formed a divergence. The 5-minute level trend callback has not returned to the center, which constitutes the third type of buying point in the entanglement theory.

1-minute K-line shows: 1-minute center still has no divergence. During the rise, the center is extended. Observe whether it forms divergence or extension of center 2. Sell or go short after the selling point is formed.

4 Conclusion

Long-term: Fundamentals: Bitcoin and Ethereum are value investments since they are real estate. The price ratio also shows that funds are flowing in. There is no divergence on the K-line. There will be no problem if you buy without thinking.

Mid-term: The second round of the epidemic will continue for several months, and the US election riots also need to be stabilized, and there is a demand for safe havens. New entrants will still play mainstream currencies, and the price ratio shows that funds are flowing in. If the K-line does not diverge, find a buying point to buy.

Short-term: Although there is no divergence, the rise at the minute level is not as sharp as before, and the strength shows signs of weakening. This 1-minute rise may form a divergence, after which you can short it using “1 sell”.

In short, Bitcoin has excellent fundamentals and is the best choice for value investment. It is likely to rise in the short and medium term. It is also possible to find suitable buying and selling points to make short-term profits. Ethereum is analyzed in this way. (Author: Zhao Yutao Editor: Wu Shuo Blockchain)