3 Reasons Why Bitcoin Is Setting Up for a Massive Rally

in #bitcoin7 years ago (edited)

Although i am not a fan of long introductions, i feel that i need to give a small brief given this is very my first post on this platform. I will do all things crypto on this channel and will publish short and crisp articles that will add value to my viewer's knowledge.

The Bullish Cup and Handle Pattern

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Picture Credits: TA by DataDash

A familiar term in technical analysis, a cup and handle pattern stems from a sideways continuation after a bearish which follows up with steep rally. With strong fundamentals and finding support at $7700, Bitcoin has shunned those who said that it is set to go down to $5200 in line with the concept of failed rallies.

Deutsche Bank Saga

https://www.cnbc.com/video/2018/06/01/deutsche-bank-is-vulnerable-to-speculation-director-says.html
Struggling to stay afloat, Deutsche Bank has reported losses for the past three consecutive years along with quick change in top management this April. The German financial services firm has reportedly mulled cutting its US presence. WSJ has reported that the US Federal Reserve has considered the bank as in a "troubled condition." $19 billion+ market cap Deutsche Bank is likely to see great jeopardy by the end of this year. As the bank's shares have taken a nosedive, it is likely that the selloff would be put into crypto.

Housing Market Bubble Is Looming

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The financial crisis of 2008 emerged from the housing market bubble bust that came about from the lending of subprime loans. This situation is again looming as housing prices have seen a massive rally. The Case-Shiller Index hit 6.3% in February compared to last year and that home prices have continued to rise even though mortgage rates have risen.

In addition, business magnate George Soros is concerned about an impending economic turmoil as EU debt crisis re-emerge along with a stronger US dollar.

Conclusion

Against a backdrop of such developments, it is likely the SEC might look to create some sort of investment in crypto likely in the form of an ETF. As bitcoin is dubbed gold 2.0, it is the best candidate to welcome the billions of dollars that will exit once the economic crisis starts to take shape.