With no real concerns in sight, the Bitcoin (BTC) price continues in its current sideways accumulation phase. All the while, tailwind after tailwind adds its momentum to a potential breakout.
Eleventh week of sideways price action
It may still take a while, but the Bitcoin price is coiling up, ready to break free of its shackles once again. After bursting out of the 8-month long bull flag in mid-October of last year, the period needed to absorb the resulting parabolic price rise was not going to be a short one.
Therefore, here we are, in the eleventh week of sideways price action, with Bitcoin jauntily tracking along in the middle of the sideways range, waiting for the time when the bulls have the confidence to make that decisive push to the next stage of the bull market.
Tailwinds are building
All the while, the tailwinds are building. Fresh on the heels of an announcement by the board of the Czech central bank that it was looking into the possibility of adding Bitcoin to the country’s financial reserves, a new announcement, by the Czech prime minister, stated that Czech citizens would not pay capital gains tax on Bitcoin they held for at least three years.
In the US, a bill to allow Bitcoin to be added to the State treasury has been passed by a House vote in Utah. So far, there are 16 states that are in the process of, or which are investigating the possibilities of legislation, that will allow them to buy and hold Bitcoin in their treasuries.
Meanwhile, also in the US, pro-Bitcoin Senator Cynthia Lummis recently argued for a government Bitcoin Strategic Reserve. She said:
“We have a gold strategic reserve, we have an oil strategic reserve. I think that it is fitting that now Bitcoin is really digital gold, it be included among our reserve assets.”
She went on to propose that the US purchases 200,000 BTC each year with money that it already has, and that it holds this for 20 years. She claims that the US could cut its debt in half over this period. She said that the growth in value of the Bitcoin could also be used to shore up the US dollar as a reserve currency.
With all this in mind, it must be wondered just how long it will take some of the world’s nation states to front-run any concrete announcement of the US starting to buy Bitcoin. Game theory could be about to begin.
Bitcoin continues in its range
Source: TradingView
As can be seen in the short-term time frame of the 8-hour chart above, the price is close to a breakout of a triangle. That said, unless one is trading in the short term, the direction of the breakout is generally not important. What is important, at least as far as the bulls are concerned, is that Bitcoin does not drop below the range that has its low at $92,000.
BTC compared with GOLD
Source: TradingView
At the end of the day, if concerned with the price of Bitcoin, one has only to look at the price of gold. Currently at $2,864, gold is firmly in price discovery, frequently making new all-time highs as it rises.
Bitcoin far and away outperforms gold, up 286% since the beginning of 2023, while over the lifetime of Bitcoin, BTC is up more than 20,000% against gold. It’s always best to step back and look at the big picture.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
