As the BRICS Summit unfolds in South Africa, the cryptocurrency market is surging with uncertainty, with Bitcoin precariously teetering on the brink of the ‘danger zone’. The digital currency’s value is fluctuating wildly, raising questions about its stability and leaving investors and spectators alike on tenterhooks.
Will Bitcoin pull through, or will this be the undoing of the world’s pre-eminent digital asset? Stay tuned as we unravel the cryptic world of cryptocurrencies.
Previous Analysis
In last week’s analysis, Bitcoin broke down from the ascending triangle, although it still remained above the 200-day moving average. However, over the next few days, the asset sharply crashed below this key indicator.
Currently, BTC is trading way below the 50 and 200-day EMA, posing a very real danger of a crash.
All this happens in the backdrop of the much anticipated BRICS summit in South Africa. The BRICS meeting is expected to conclude with decisions that will shake the global financial and political spheres
Bitcoin Price Next Week
Since the price is now 3.84% below the 200-day EMA, traders need to tread carefully. The next major support for Bitcoin sits at $20,000, but if bears persist, the price could fall to $15,000. Traders who have patience can Short 10X here and make a handsome +230% profit in the short to medium term.
On the daily, Bitcoin is forming a bearish flag, a bearish chart pattern signifying a potential continuation of a downtrend. This pattern is named as such due to its resemblance to a flag on a pole when visualized on a chart. Traders often interpret the breakout from this consolidation phase, as the price drops below the ‘flag’, as a signal to enter a short position, anticipating a further decline. Last week’s short-term call was a massive success.
UPDATE: BRICS to Officially Abandon US Dollar for Trade Settlement
The BRICS nations have now officially resolved to abandon the US dollar as a medium of exchange for trade settlements between member nations, thus furthering the de-dollarization initiative. It is expected that other nations will soon follow suit.
This was a much-anticipated decision since rumors of the BRICS alliance planning the de-dollarization of the global economy had become mainstream news. The alliance presents a formidable enemy to the U.S. and the G20 nations.
As of August 24, 2023, BRICS controlled 80% of global oil production after UAE, Iran, and Saudi Arabia joined the alliance. The main motivation for this move was to protect their interests from U.S. sanctions and create a more equitable global economic system.
DISCLAIMER: The work included in this article is based on current events, technical charts, company news releases, and the author’s opinions. It may contain errors, and you shouldn’t make investment decisions based solely on what you read here.