Bitcoin, which broke the ascending trend line a few days ago, calmly resumed the upward trend that began about a month and a half ago without any apparent fundamental reasons. Recall that we believe that the main reason for the last round of cryptocurrency growth is the rush of many investors to buy bitcoin in full until the new legislation is adopted in the States, according to which most of the transactions will "pass" through the Tax Administration. Thus, from this point of view, the growth is quite logical, although it was really difficult to predict it. However, the problem now is something else. It is unclear how much longer the growth of the main cryptocurrency will continue? The quotes of the "bitcoin" managed to stay above the level of $ 46,600. However, bitcoin can't grow back to its absolute highs in just a couple of months, without even having good fundamental reasons for this. One way or another, but it is stupid to deny now that the upward trend persists. At the moment, we can only conclude that it has weakened a little, but it has not ended. In the illustration below, we have plotted a new ascending channel and if the price is fixed below it, then we can again count on a powerful drop in the cryptocurrency.
Meanwhile, more experts are inclined to believe that by the end of the year, bitcoin can reach the level of $ 73-75 thousand per coin. However, we would like to remind you that when bitcoin was trading at $ 30-33 thousand per coin, many experts and analysts also said that now the exchange rate is at least $ 24,000. Instead, almost out of the blue, bitcoin rose to $ 50,000. Thus, we remind you that any expectations, assumptions, and hypotheses must be confirmed by specific technical signals. At this time, we continue to expect a fall in BTC, but we need to wait for a new sell signal in the form of consolidation below the ascending channel.
Meanwhile, ECB President Christine Lagarde said that any cryptocurrencies and stablecoins cannot be recognized as currencies and are speculative assets. According to the ECB president, all stablecoins are not currency equivalents, they are just tied to them. However, many stablecoins are not fully backed by real fiat money. For example, it recently became known that the issuer of Tether indicated in a report that the share of funds and bank deposits that can be withdrawn in two or fewer days is only 10%. Thus, formally, it is very difficult to call any stablecoins stable and secured.
In technical terms, bitcoin continues to be in an upward trend on the 4-hour timeframe. Bitcoin has not managed to gain a foothold below the Ichimoku cloud, but there is already a new benchmark – an ascending channel. The departure of the "bitcoin" quotes below will indicate the possible beginning of a new downward trend, which we have been expecting for a long time. At the same time, overcoming the level of $ 51,350 can provoke an even greater growth of bitcoin, up to its annual highs. We recommend selling cryptocurrencies after fixing below $ 46,600.The material has been provided by InstaForex Company - www.instaforex.com