Bitcoin is another option in this current crisis.
The current news trend in the United States is centered around the debt ceiling crisis, which is only a few days away from reaching its deadline. The negotiations and resolution of the US debt ceiling issue are still ongoing and have yet to be concluded.
Many economists are concerned that this situation could escalate into a major global financial crisis. Even though politicians like Biden remain confident and assert that there is a solution, as investors, we should still take precautions.
Robert Kiyosaki, a renowned investor and author, confidently criticized Biden's statements, stating that there will be no "soft landing." Furthermore, he criticized that corruption within the country is increasing significantly under Biden's leadership.
If a debt default were to occur, it could trigger a severe stock market sell-off on Wall Street. UBS predicts that the S&P 500 could drop by at least 20%. However, it could be even more severe because the United States has never had a significant history of debt defaults.
Apart from that, bonds would also be sold off, leading to a definite global recession. Both private companies and central banks worldwide hold bonds as low-risk assets and as collateral for various loans. The impact would undoubtedly be significant. However, Bitcoin could be another lifeline as it is an asset that is not systemically tied to US bonds.
Michael Saylor, the co-founder of MicroStrategy, has stated that the current surge in Bitcoin is the beginning of a new bull run. He supports his prediction by highlighting Bitcoin's halving events, increased acceptance of Bitcoin, and legal developments in the crypto industry, all of which will benefit Bitcoin directly and indirectly.
Investors and developers are increasingly shifting their attention from other blockchains to the Bitcoin network, while regulatory agencies are targeting other competitors of Bitcoin, such as Ethereum. They refer to statements made by Gary Gensler, the SEC chairman, earlier this year, indicating that cryptocurrencies "beyond Bitcoin" must comply with securities laws.
Technical analysis data (5H)
Resistance: 27643.6, 27875.3, 28282.6
Support: 27004.6, 26597.3, 26365.6
Buy/Long 1: If there is a touch of support within the price range of 26597.3 - 27004.6 but unable to break the resistance at 27004.6, you may consider setting a TP around 27875.3 and a SL around 26365.6 or based on your acceptable level of risk.
Buy/Long 2: If you are able to break the resistance within the price range of 27643.6 - 27875.3, you may consider setting a TP around 28282.6 and a SL around 26597.3 or based on your acceptable level of risk.
Sell/Short 1: If there is a touch of resistance within the price range of 27643.6 - 27875.3 but unable to break the resistance at 27643.6, you may consider setting a TP around 26597.3 and a SL around 28282.6 or based on your acceptable level of risk.
Sell/Short 2: If you are able to break the support within the price range of 26597.3 - 27004.6, you may consider setting a TP around 26365.6 and a SL around 27875.3 or based on your acceptable level of risk.