Bitcoin pauses briefly around the $ 58,000 level - Kakiforex.com - Financial Market Media No. 1 in the World Bitcoin pauses briefly around the $ 58,000 level Bitcoin pauses briefly around the $ 58,000 level
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May 2, 2021

Bitcoin pauses briefly around the $ 58,000 level

 The situation with bitcoin is getting more interesting. Yesterday, the quotes of the world's first cryptocurrency rose by $ 3,800 and thus broke the level of $ 55,859, which we called the "last frontier." Therefore, the barrier to further growth of the "cue ball" rate seems to be removed. However, today, on Saturday, the quotes stopped growing around the level of $ 58,000 per coin. It should be noted that this is a 61.8% by Fibonacci from the previous fall. Thus, in theory, the price can now bounce back from this level and resume the correction. We still believe that the correction scenario is more likely, as we do not see any new good reasons for the rise in the price of bitcoin. However, at this time, it should be recognized that there is no technical reason to expect a new fall. The quotes of the "cue ball" were fixed above all the important lines of the Ichimoku indicator, and on the hourly time frame, they were fixed above the descending trend line. Thus, sellers now need to wait for at least a consolidation back below the critical line, which continues to lie at the level of $ 55,859. The illusory hope for a rebound from the $ 58,000 level also remains.


Meanwhile, the company Microstrategy, which develops analytical software and whose shares are listed on the NASDAQ, continues to buy and announce new purchases of bitcoin. And it already looks very strange. Imagine that Microsoft today announces that it will buy bitcoin for a couple of billion dollars in a couple of months. Why would the company do this if the quotes of the "cue ball" will immediately grow? It's the same with Microstrategy. Why announce your future transactions of such a hype and highly volatile instrument as BTC? From our perspective, this is done only to artificially increase the demand for "digital gold" and create a new hype around cryptocurrency. Earlier, we have already said that it is vital for those investors who already own a large number of coins to maintain a high demand for bitcoin and encourage the influx 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 focus the attention of traders on the fact that such news from companies that have invested billions of dollars in cryptocurrency and private investors with the same capital is unlikely to 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 on all corners that bitcoin will continue to grow, and you are going to buy a couple of hundred or thousands more coins.


The "cue ball" overcame the 50.0% Fibonacci level in technical terms, although it initially rebounded from it. However, the price has already increased to the level of 61.8% in Fibonacci, which theoretically can also restrain the further growth of the crypto tool. Thus, so far, the further growth of "digital gold" is still not obvious, given the lack of a supporting fundamental background and the technical exit of the quote beyond the ascending channel. We have already said that the upward trend is weakening and may end. Now the bulls have attempted to maintain the upward trend, but it is still unclear whether it will be successful.