Milestone $55,859 fell! The cryptocurrency pauses briefly around the $ 58,000 level.

So, the Bitcoin situation is getting more and more interesting. Yesterday, the quotes of the world’s first cryptocurrency rose by $ 3,800 and thus crossed the $ 55,859 level, which we called the “last frontier.” Consequently, now the barrier to further growth of the “cue ball” rate seems to be removed. However, today, on Saturday, quotes have stopped growing around the level of $ 58,000 per coin. It should be noted that this is not just a level, but Fibonacci 61.8% of the previous fall. Thus, purely theoretically, the price can now bounce off this level and resume the correction. We continue to believe that a correctional scenario is more likely, as we see no new compelling reasons for Bitcoin to rise in price. Nevertheless, at this time it should be admitted that there are no technical grounds to expect a new fall. The cue ball quotes have fixed above all important lines of the Ichimoku indicator, and on the hourly timeframe they have fixed above the descending trend line. Thus, sellers should now wait, at least, to consolidate back below the critical line, which continues to lie at the level of $ 55,859. The illusory hope for a rebound from the level of $ 58,000 also remains.

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Meanwhile, Microstrategy, which, we recall, develops analytical software and whose shares are listed on NASDAQ, continues not only to buy bitcoin, but also to announce new purchases. And this already looks very strange. Imagine Microsoft announcing today that it is going to buy a couple of billion dollars worth of bitcoin in a couple of months! Why would a company do this if the cue ball quotes immediately rise? It’s the same with Microstrategy. Why announce your own future deals for such a hype and highly volatile instrument like BTC? From our point of view, this is done only in order to artificially increase the demand for “digital gold”, to create a new hype around the cryptocurrency. We have already talked about the fact that it is vital for those investors who already own a large number of coins to maintain high demand for bitcoin and stimulate the flow of new investors and investments. Only in this case, the asset will continue to rise in price, bringing profit to the owners. Thus, we continue to draw the attention of traders to the fact that such news from companies that have invested billions of dollars in cryptocurrency, and from private investors with the same capital, should hardly be taken seriously. What would you do if you owned a billion dollars worth of bitcoin and understood that the cryptocurrency would continue to grow if new investors and institutions continued to buy it? Probably the same thing. They would trumpet at all angles that bitcoin will continue to grow, and you are going to buy another couple of hundred or thousands of coins, at least for credit funds, at least for whatever.

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In technical terms, the “cue ball” has overcome the 50.0% Fibonacci level, although initially it rebounded from it. However, now the price has already risen to the 61.8% Fibonacci level, which theoretically can also hold back the further growth of the crypto instrument. Thus, for now, further growth of “digital gold” is still not obvious, given the absence of a supporting fundamental background and a technical exit of the quotation beyond the upward channel. We said earlier that the uptrend is clearly weakening and may end. Now the bulls have made an attempt to maintain the uptrend, but it is not yet clear whether it will be successful.

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