The first trading day of the week ended in a good plus for bitcoin: +$5 100. This is an excellent result even for bitcoin, which almost every day passes for 3-4 thousand dollars, or even more. At the moment, many traders and investors are at a crossroads on what to do. On the one hand, the correction is clearly not over yet, as indicated by technical indicators and signals. While on the other hand, it is tempting to start buying bitcoin again in the hope of a new round of upward movement.
Here, it is necessary to pay attention to three points at once. First, a sharp rise after a sharp fall is hardly the beginning of a new round of the upward trend. Yesterday's candlestick looks like an attempt by buyers to bring the upward trend back to life. But that doesn't mean they succeeded. Second, the last three local highs are $58,000, $61,669, and $64,749. This means that each new round of the upward movement is only slightly stronger than the previous correction and weaker than the previous round of the upward movement. This fact still suggests that the upward trend is either completed or will end in the near future (unless something unexpected happens). Third, the fundamental background for bitcoin remains quite weak at the moment. Recall that the last round of the fall had very specific reasons. First, accidents and explosions were reported at several coal mines in China, which led to a power outage in the country's most "mining" district of Xinjiang. Then, it became known that the US Treasury is preparing large fines for several financial organizations for money laundering through bitcoin. Later, it was reported that the Turkish authorities completely banned payment within the country for goods and services in cryptocurrencies. And last of all, Joe Biden is going to increase taxes for the rich, in particular the capital tax, which will also include investments in bitcoin. Moreover, it should be doubled.
There is no positive news yet. Every day, one or another crypto expert gives another forecast that bitcoin will rise in price to $100,000 or higher. But you must remember that most of these crypto experts are simply interested in bitcoin continuing to grow. From our point of view, the correction is not yet complete, it is just that "digital gold" has been declining for 10 days and it was already necessary to correct against the correction. Thus, tomorrow or the day after tomorrow, the fall in the quotes of the number one cryptocurrency in the world may resume.
In technical terms, bitcoin continues to be under the critical line, but has gained a foothold back inside the Ichimoku cloud. Also, the cryptocurrency quotes returned above the level of $50,770. However, do not despair ahead of time. Below the critical line, the chances of continuing the correction remain very decent. Plus, do not forget that the quotes left the ascending channel.
