Bitcoin increased to the level of $ 51,350 during the first few days of the current week. Earlier, it was mentioned that this scenario is very likely, since the price first passed the Ichimoku cloud, and then the trend line. It should also be noted that if the level of $ 48,682 is broken, then Bitcoin can further rise to the next level. This is what happened. From a technical point of view, it can be seen that everything is quite simple and easily predictable at this time, but it is very difficult to deal with the "foundation" now. In particular, there have been several important news for Bitcoin recently, but most of these testified in favor of a further decline of the quotes. However, the main digital asset was not allowed below the level of $ 40,746 – every time Bitcoin approached this level, they immediately began to buy it.
Therefore, the fundamental background in recent weeks has not been fully worked out. Now, it is generally very difficult to find a reason why Bitcoin's price has risen by $ 10,000 again in a few days. Last week, Jerome Powell said that the Fed is not going to ban bitcoin following the example of China. But things turned out like this: China imposes a ban on bitcoin and all transactions with it, which resulted in a decline by $ 10,000. El Salvador makes Bitcoin the second official payment in the country and Bitcoin declined by $ 7,000; lastly, the Fed announces the preservation of the status quo for Bitcoin and it grows by $ 10,000. It does not make sense.
Therefore, we believe that the fundamental background is currently not more important for Bitcoin, but the general market sentiment. It shows that market participants are quite willing to buy cryptocurrency and quite actively protect it around certain levels. In addition, CoinShares said that institutional investors are interested again in Bitcoin over the past few weeks, and there was a decline in altcoins. In general, all this allowed Bitcoin to rise again to the level of $ 51,350.
What to expect next? From the point of view of the fundamental background, there is nothing to say now, since there is practically no news. The markets are still waiting for the US Congress to approve the "infrastructure package", after which it will be thoroughly known what changes await the US cryptocurrency sphere. The markets are also waiting for the US Senate's decision on the government debt limit, as well as the Fed's decision on the QE program, which will be announced during the next meeting, that is, on November 3. It can be seen there are still a lot of potentially important topics on the range, but Bitcoin is simply in demand on the market at this time.
There is still an upward trend on the four-hour timeframe. The price already broke through the level of $ 51,350, so a rebound from this level can trigger a new round of correction with the targets of $ 48,682 and $ 46,600. In this case, it is suggested to sell Bitcoin. If the level of $ 51,350 is broken, then one can still buy with targets around the level of $ 56,500.The material has been provided by InstaForex Company - www.instaforex.com