Over the past few days, Bitcoin has managed to stabilize its performance and maintain safe positions in the region of $ 53 -54 thousand. However, in order to fully complete the correction and create a platform for the future growth of cryptocurrency, another difficult barrier must be overcome.
Bitcoin needs to reach and consolidate above the $ 60 thousand mark, from where the coin began its downward movement. However, the dynamics of asset indicators over several days suggests that the first cryptocurrency cannot overcome this milestone due to a combination of factors. First of all, the asset does not have the necessary market support and hardly passes the $ 54.5 milestone, where a large number of put options are concentrated. In addition, the cryptocurrency is still volatile in regards to positive announcements. For example, BTC indicators began to grow to the level of $ 56.5 thousand after reputable publications suggested that Facebook acquired bitcoins. However, the price of the cryptocurrency began to fall sharply after the publication of the company’s reports, after which it became clear that the rumors were unfounded.
That is why the indicators of the first cryptocurrency have practically not changed over the past day. Bitcoin continues to fluctuate in the range of $ 53 -55 thousand, but a stable position is in the region of $ 54 thousand. Despite the fact that over the past day, the cryptocurrency has risen in price by only 0.6%, changes in asset indicators over the past few hours show an increase of 1.5%, which is accompanied by a surge in trading volumes. However, daily trading volumes continue to remain within $ 46 billion, which indicates that there are no prerequisites for overcoming the $ 60 thousand mark. The very low daily trading volumes also speak of the fears of large investors, which are associated with the excessive volatility of the cryptocurrency. The market has already realized that if an asset rises in price, then in most cases it will face the same sharp and unexpected correction. The recent Facebook example illustrates this perfectly for both institutional and retailers.
Despite all the negative associated with the volatility of the asset and its wide fluctuations, a news background begins to form in the market, which can launch a new cycle of Bitcoin growth. First of all, it is worth noting that analysts’ fears about changes in monetary policy in the United States did not come true – the Fed left the base rate at 0-0.25%. In addition, it became known that the authorities of Monmouth County, New Jersey, recorded a 250% profit from the sale of bitcoin. Recall that the sale of the first cryptocurrency allowed Tesla to achieve a record quarterly revenue. Also, the positive comes from European markets, where German investment companies were allowed to invest in cryptocurrency about 20% of their portfolio.
As of April 29, Bitcoin is in a safe zone, which exceeds $ 52 thousand, which allows maintaining the bullish trend. The market has already proven that it is ready to forgive BTC sharp jumps and provide support (case from Facebook). Considering the above, as well as the increasing positive, the first cryptocurrency will attempt to overcome the next important milestone – $ 58 thousand. If successful, this will open the way for bitcoin to $ 60 thousand, where the cryptocurrency can gain a foothold and start systematic growth. If BTC stops at $ 58 thousand, then expect a rollback to the usual positions and a retest for support.