Bitcoin Babaji with the dolphins doing TA on the beach - where is BTC headed and the rise of the Stable coin
Hi there UCommunity great to be part of the UNetwork. Today I find myself beside a huge school of dolphins just offshore here on the south Cape coast of Africa. The bay is full of marine life, from a seal colony, to dolphins to sharks to whales in winter for calving. It’s a paradise and sanctuary for marine life in this way too, as well as a tourist hideaway.
Today I want to point out the tightening wedge in bitcoin’s sideways trading price pattern. The wedge is narrowing by the day and thus a breakout is imminent. Whether to the upside or the downside is hard to say, but I favour the downside in my forecast today, based on the fact that we are in an overall descending price channel. On the shorter term we are trading sideways in a narrowing band. We have support at $3700 and $3500 if there is a move down.
Both the Stochastic and the RSI are in the middle rage around 50, so undecided although the Stochastic has been moving down on the daily. Even on the one hour chart, we are approaching the top of a descending wedge or triangle, since the last biggest drop in late February.
With so many stable coins out now, price can vary in relation to each by a fraction, as it does on varying exchanges sometimes. Which stable coin do you prefer, if any? Is it still USDT or has their reputation become too suspect without the proper audit of their account to show that they actually have the fiat dollars to back up their billion dollar Tether printing. Or do you prefer Paxos, TUSD, USDC, USDG, USDS DAI, or some other I didn’t mention?
I know countries sometimes like to launch national stable coins pegged to their oil as in Venezuela or to their fiat. Iran also talked of experimenting with a token to get them out of the dollar sanctions bind. Russia was rumored to be in discussion about a digital Ruble. Any insightful country would be exploring blockchain capabilities for solving their tech and economic problems today. But I don’t think we can really call any nationalized token a real cryptocurrency. It’s too centralized.
Small is better
Who knows what might happen in the future as digital money replaces fiat globally. We might have different types of digital cash for varying purposes. Some of the smaller island and city states are currently considering a nation cryptocurrency. Malta and Lichtenstein, for example, are compact countries with such small populations that it makes it easier for them to implement sweeping changes in the economy or infrastructure. I can see Iceland following suit. They are already famous for kicking out their central bankers after they failed after the last 2008 financial crash. Some Caribbean island states sure to follow too. Small decentralized self-sufficient communities and nations are the way to go in the new economy. Not globalized conglomerates.
To conclude check out the video below and get a glimpse of the rugged beauty of Africa, surrounded by marine and wildlife. TA tips included. Not financial advice of course.