The last round of bitcoin's growth looks vastly strange. The cryptocurrency has grown by almost $21,000 in total, despite the fact that there were no good reasons and fundamental factors for this. Moreover, most traders and experts expected a further drop in quotes when the price was not far from the level of $30,000. But for no reason, bitcoin turned up and has been growing for more than a month. From our point of view, there is a classic situation that is typical only for bitcoin. At a certain point in time, market participants began to buy cryptocurrency again, not believing that it is capable of continuing to fall below $30,000 per coin. That is, without collusion and without having any common grounds, the markets began to buy this cryptocurrency. And when the growth had already picked up pace, it was joined by other participants who believe that a new bullish trend was being formed at this time. Thus, by and large, the current growth of bitcoin by $21,000 is just random. However, it must be noted that any fundamental theory must be confirmed by specific technical factors. That is, we, for example, expect a new drop in the bitcoin exchange rate to the level of $29,700, since we believe that the bullish trend is over, and at this time the markets are buying bitcoin simply ahead of the curve, because they are afraid that new legislation will be adopted in the States, which will greatly complicate the circulation of bitcoin and increase tax pressure on almost every transaction. Moreover, in the coming months, the Fed may announce the curtailment of the quantitative stimulus program, which will mean a gradual cessation of inflating the money supply. Accordingly, the inflow of new money to the markets will decrease. These factors, from our point of view, indicate that the growth of bitcoin is not long and random. However, as long as the price is located above the ascending trend line, it makes no sense to sell the cryptocurrency. On the contrary, it should be bought, according to the formed trend. So, it turns out in the end that the foundation speaks in favor of the fact that bitcoin should fall, but at the same time, from a technical point of view, an upward trend remains.
Technically, bitcoin continues to be in an upward movement on the 4-hour timeframe and has overcome 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. Thus, the next target for the growth of the first cryptocurrency in the world is the level of $51,350. It is advisable to sell bitcoin as soon as the price is fixed below the ascending trend line.The material has been provided by InstaForex Company - www.instaforex.com