Crypto Analyst Cred Makes A Case That Bitcoin Is Now ‘Serious Money’
According to a prominent crypto market analyst, known as Cred, the bull case for the leading crypto asset Bitcoin (BTC) is looking very good as the price is firmly moving up. He also notes that that cryptocurrency is becoming “serious money” amid the latest geopolitical situation.
The analyst writes in the TechnicalRoundup newsletter that Bitcoin breaking the resistance at $40,000 area is a good sign for its technical market structure.
“As for technicals, the market is approaching multi-timeframe resistance in the mid-$40000 area. $46000-$47000 is a decent weekly line in the sand. Moving into it, there are some positive signs. Two in particular. First, the move into resistance is following a higher low. Second, this is the third test of that resistance in quite a short period of time. In general, the more a resistance is tested from the same direction, the weaker it becomes.”
The analyst also makes a case that BTC testing the $45,000 level, which is one of the largest daily uptick in months, hints weakening resistance under the $50,000 mark.
“Some signs that resistance is getting weaker. Momentum/more sustainable trend triggers above $47000 on a higher time frame basis. Pullbacks that aren’t shallow (much below $40000) are probably bearish.”
Touching the topic of geopolitical developments in Eastern Europe, Cred notes that due to the current situation crypto has had a real chance to what it can do. He makes a case that crypto is now considered “serious money” now but on the flip side the increased attention and scrutiny on the space might lead to more regulation.
“First, crypto is undeniably serious money now. If you wanted adoption, beyond a couple of U.S. institutions buying it for their balance sheets, this is what it looks like. Welcome to the big leagues.
Second, this will likely accelerate the regulatory timeline. Just like mandatory (base level) KYC (know your customer) became industry-standard virtually overnight, it’s likely that we see a move towards centralized exchange withdrawals being restricted to KYC’ed and whitelisted wallets in the near distant future. The premise that individuals are using crypto to circumvent sanctions will not be taken lightly, in our view.
Last, this geopolitical tango is bullish and bearish. Or, at least, a double-edged sword. Ukraine is accepting crypto donations to fight a defensive war. This is seen as a net positive. At the same time, there is speculation that Russian oligarchs (and perhaps organs of the state itself) could use crypto to circumvent sanctions. This is seen as a net negative. Does one ‘cancel out’ the other?”
