Bitcoin price is moving slightly upward to 4,025 USD in a highly volatile market. The cryptocurrency conquered a new resistance level, but the key target is 4,100 and then 4,200 USD.
Other cryptos are trading also without significant change with Ethereum falling slightly to 137.15 USD and XRP depreciating to 0.3086 USD, while EOS reporting a minimum increase to 3.66 USD.
Litecoin continues to have difficulties against the 60 USD threshold and keep positions at 59.90 USD.
The total cryptocurrency market value rose insignificantly to 140.062 billion USD.
Bitcoin price analysis
Recently, the price of Bitcoin recovered above 4,000 USD. The cryptocurrency was traded above the resistance levels of 3,940 USD and 3,960 USD. But the 4,000 USD level acted as strong resistance and stopped further profits.
The Swing Peak is formed close to 3,999 USD, and later the price is adjusted lower. There was a fall below 3,980 USD and 23.6% Fibo retracement rate from the last increase from 3,872 to 3,999 USD.
However, 3,940 USD acted as a strong barrier for sellers. The price has found support slightly above 4,000 USD and the 50% Fibo retracement rate from the last increase from 3,872 to 3,999 USD.
Currently, the price is moving higher and trades around the resistance of 4,020 USD. There is also a key downward trend, formed with a resistance of 3,980 USD. Above the trend line, the 100-hour SMA is close to the 3,985 USD level.
Therefore, a breakthrough over trend line, 100-hr SMA and 4,020 USD is required to gain control buyers. Over 4,020, the next key resistance is close to 4,040 USD, over which the price is likely to test the resistance of 4,080 USD. On the downside, the initial support is 4,000 USD. However, the main support is nearly 3,940 USD, which is likely to remain unspent.
The price of Bitcoin is clearly consolidating above the 4,000 USD support level.
Bitcoin vs Gold
Some experts claim that the market capitalization of the Bitcoin can easily overtake that of gold over the next 20 years. This was first stated by the Chief Executive Officer of Galaxy Digital, one of the largest Crypto investment companies, but later was confirmed by the founder of Morgan Creek, Anthony Pompliano.
“I know that, for example, Goldman is heading to securitized tokens. They are still doing nothing, but they are getting ready and looking at all the issues, the most important is where they will be stored? Should they build their own trusteeship or use it to someone else? How to get them to work”, said Anthony Pompliano. “The regulatory framework is not yet available for securitized tokens. We are working very hard on the case of security tokens and we have, I think, some interesting things in mind”, added he.
Thus, the potential for increasing the value of the Bitcoin remains serious and traders will not be mistaken if they have a small percentage of BTC in their portfolio.
Gold has a market capitalization of nearly 8 trillion USD, while Bitcoin has only 70 billion USD. There is no way the cryptocurrency to go there in the next year or two. But for a 20-year period, it can be quite easy, according to the experts.
Moreover, the latest data show that gold mining consumes 23 times more energy than crypto mining. According to the report, gold costs about 105 billion USD per year and consumes about 475 million GJ of energy, while the Bitcoin costs only 4.5 billion USD and uses only 183 million GJ per year. Other such systems as gold recycling, fiat money and their printing, the banking system, and government processes cost more than Bitcoin mining.
These data are important because one of the main arguments against the existence of the Bitcoin is that the cost and the consumption of electricity are high. Although there is some scientific evidence that this is not the case, governments and individuals who do not like Bitcoin and other cryptos always highlight this problem.
Some say that the power for mining Bitcoin consumes more electricity than 82% of all countries around the world. It is alleged that a Mongolia-based crypto mining company consumes as much energy as the Boeing 737. Indeed, some studies indicate that mining a Bitcoin can actually be beneficial to the environment. Moreover, to minimize costs for production, the miners are turning to renewable energy, which is actually beneficial for the environment.
The study shows that Bitcoin is not a problem in terms of energy consumption and environmental damage.