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Bitcoin has completely lost its status as a “fighter against inflation”, but this does not prevent it

Relevance up to 07:00 2022-04-21 UTC–4

Bitcoin is breaking above $ 41,200 and is now aiming for the return of the next major resistance at $ 43,200, to which the growth will be quite rapid. But the ether is not so good with the $ 3,150 level, which the trading instrument rested on in the middle of this month. But before we talk about the technical picture, I would like to note several statements by the beloved author of the bestseller “Rich Dad, Poor Dad” Robert Kiyosaki. In his recent interview, he talked a lot about hyperinflation and depression, advising investors to buy gold, silver, and Bitcoin. Previously, he was an ardent opponent of cryptocurrencies, calling them another bubble and Ponzi scheme.

Robert Kiyosaki issued several warnings about the US economy, pointing to the biggest financial bubble while referring to hyperinflation and depression that will come in the near future for investors and consumers. The author of the book “Rich Dad” also said that the pensions of the baby boomer generation are simply disappearing into thin air due to high inflation and that $ 10 trillion, apparently referring to the bloated balance sheet of the Fed, is already gradually coming to an end. He also called the US government, Wall Street, and the Federal Reserve thieves.

Kiyosaki also drew attention to the inversion of the bond yield curve, which was last in 2008. “In 2008, I borrowed $ 300 million to buy a great property at a bargain price. Time to get rich again. It’s time to become smart, not greedy,” he said. In his opinion, weak businesses and greedy investors will fail very soon.

It is worth noting that recently more and more economists have been saying that serious problems await the US economy and a recession is not far off. However, the more people talk about it, the more calmly the stock markets and the cryptocurrency market react to everything, which has recently had a crazy correction with the NASDAQ market. This suggests that investors have definitely attributed bitcoin to a risky asset, and it has finally lost its status as a “fighter against inflation”. The risk that the Federal Reserve’s actions will plunge the US economy into recession has increased significantly recently, as the fight against inflation implies higher interest rates and tight monetary policy.

But don’t take Kiyosaki’s words too seriously. Recently, he has warned many times about massive stock market crashes and bubbles about to burst. He also predicted a “giant stock market crash” in October last year, and before that, he said that the US would soon slide into a new depression. Last month, the author of the book “Rich Dad, Poor Dad” said that the US dollar is about to collapse, and recommended investors buy more gold, silver, bitcoin, Ethereum, and Solana. None of this, as you can see, has happened.

As for the technical picture of bitcoin

The bulls gave a serious rebuff when the exchange rate returned to the April lows. Although investors’ fear remains, holding the rate above $ 39,000 calmed them down a little. The bull market that we have been seeing since the beginning of March this year has not gone away. Yes, the downward correction is quite large, but the bulls coped with the task and broke above $ 41,200 – this changed everything dramatically. The 200-day average around the $ 48,550 mark already seems not so far away, but to return the initiative from buyers, active actions are needed in the area of the 100-day average, which is just located in the area of $ 41,220. Only a breakdown of this range will open the possibility of reaching the highs in the area: $ 43,200 and $ 43,530. The fact that bitcoin is already beginning to gradually enjoy support from major players may mitigate its fall after recent data on inflation in the United States, which seriously affected the American stock market, strongly correlated with the cryptocurrency market. In the event of a decline in the trading instrument, only a breakdown of the $ 39,290 level will fail the trading instrument below the minimum of $ 37,500, and there it is close to $ 36,000.

As for the technical picture of the ether

The focus remains on the new resistance of $ 3,140. A breakthrough of this level will quickly return the ether to $ 3,306, and there is a 200-day moving average very close, which passes in the area of $ 3,480. Only the consolidation above will continue the upward trend for the trading instrument. The breakdown of $ 3,480 will serve as a new impulse to reach the levels of $ 3,540 and $ 3,685. In case of a return of pressure on ETH, purchases in the area of large support of $ 2,950 are not excluded. A break in this range will be a reason to go to the lows: $ 2,740 and $ 2,500, where the major players will again begin to actively act.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

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