InstaForex

August 23, 2021

Bloomberg: Bitcoin's biggest problem is Ether. Binance is being sued

 Bitcoin made a perfect rebound from the support level of $43,852 yesterday, and at the same time from the ascending trend line, thus forming an excellent buy signal. Subsequently, the quotes of bitcoin rose again to the level of $47,500 and buyers are likely to storm this level in the coming hours. Overcoming this level will allow the bulls to maintain an upward trend, and therefore, rely on the further growth of the number one cryptocurrency in the world. At the same time, the price has already bounced twice from the level of $47,500, and there was no super-positive news for bitcoin over the past day. Thus, we are once again asking the question, what were the reasons for the growth of "digital gold" by $18,000 over the past month? So far, we have not found an answer to this question.


Meanwhile, one of the chief strategists of Bloomberg, Mike McGlone, said that the main factor that holds back the further growth of bitcoin is ethereum. Moreover, it is very interesting that this statement was made exactly when bitcoin has already risen by $18,000 and is no longer so far from its absolute highs. However, it seems that according to McGlone, the potential of bitcoin is much higher, but the markets have recently been buying Ethereum more and more often, and not bitcoin. McGlone believes that this is due to the fact that Ether is a "billing block for the entire fintech, DeFi and infrastructure in the world that's going digital". Earlier, a Bloomberg analyst has repeatedly predicted that bitcoin will grow to $100,000 per coin. However, now he doubts this, because if Ethereum becomes mainstream for the whole world as Bitcoin once became, it may prevent the first cryptocurrency from maintaining a bullish trend.


Meanwhile, the Binance cryptocurrency exchange was sued by a group of international traders who accused it of being unable to provide customers with access to its infrastructure during maximum loads. Traders blamed the Binance exchange for large losses and hope that other investors will sign up to their $20 million lawsuit. Traders say that on May 19, when the cryptocurrency market collapsed due to the actions of the Chinese authorities, there was a failure on the exchange that did not allow transactions to be made at a very important time, which, in turn, led to losses.


Technically, bitcoin continues to be in an upward movement on the daily timeframe and has twice worked out the level of $47,500, which is the minimum of April 26, as well as 50% of the movement from the absolute maximum of the value to the minimum of 2021. If the level of $47,500 is overcome, you should continue to buy bitcoin with a target of $50,700. If the quotes are fixed below $43,852, sell with the first target of $40,746.