If you look at the graph below you can see that the answer for the big bitcoin queston is YES.

Similarly to gold, there are no fundamentals underpinning the value of bitcoin. There is no cash flow, dividend or interest, or cash need of an economy in the background. However, it became so popular among traders, miners and so on that we decided to analyze the current market conditions. The lack of fundamentals allows us to apply purely technical analysis.

However, as interest rates are expected to increase at a moderate pace in the major economies and the supply of bitcoins is scarce, speculative demand may continue to outpace supply for a while.

The big question is that what happens after an exponential move? There should be a major correction and after that a consolidation phase. What happen after that is much more uncertain. It depends on the future of bitcoin as well as the current fate of the current bull market where liquidity fuels price increases everywhere. Eventually it all goes down to the decisions of central banks but first and foremost to the FED’s policies.

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