Bitcoin made a 15% gain against the dollar last night. An increase that we are not used to in recent times. The price makes a higher low for the first time since the decline from the all-time high.
Ruble drops massively
Before we look at bitcoin, it is good to first look at the ruble. The Russian ruble is having a hard time, as a result of which the demand for bitcoin seems to be increasing. Yesterday the currency fell by 20% (against the dollar). It’s impossible to say for sure, but it seems Russian residents want to keep their money safe in these uncertainties. A logical refuge is therefore tether or bitcoin.
The chart above shows the weekly chart of the ruble against the dollar. The rate of 0.0091 was an all time low for the Russian currency. This of course causes a lot of panic, which can have a positive effect on the price of bitcoin.
Bitcoin is worth more than the ruble
If we compare the ruble with bitcoin, we see that the price is on its way to a new all-time high. The ruble has lost a lot against bitcoin, as we already saw in the article from this morning† Bitcoin is now officially worth more than the Russian ruble. The image below shows the 3-day chart of bitcoin versus the ruble.
The effect of the war is clearly visible there. The start of the war is marked in the red circle; the moment when bitcoin started to rise massively against the ruble. The price is now on its way to the all-time high of 4,980,000 rubles.
Bitcoin is sterk
Looking at the chart of bitcoin versus the dollar, we see that bitcoin is making its first higher low since its decline. Buyers have pushed the price up at a nice point, giving the appearance of a familiar pattern; an ascending triangle.
Bitcoin’s highs are now leveling out as higher lows emerge. This means that sellers sell in the same place, but buyers push the price higher and higher.
A break from the horizontal zone could, in my view, result in a completely bullish scenario for bitcoin. However, the price may first fall back to the blue trendline, to make another higher low there. When the above happens, this pattern is officially confirmed for me and then I will be looking at new heights.
The fact that bitcoin proves itself so strongly in a strange time of uncertainty is very positive for the price.
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