- The bullish trend may continue
Bitcoin failed to show a strong growth or decline over the weekend, although it used to happen very often that Monday began far from where Friday ended. However, the main digital asset is now resuming its correction after breaking through its all-time highs. At the moment, Bitcoin's quotes have already entered the Ichimoku cloud several times, but have never been able to break through it and, accordingly, continue growth. A trend line has been formed, which now supports the corrective mood, but we draw the attention of traders to the fact that Bitcoin is actually not in a rush to decline. This means that they are not particularly enthusiastic about selling it. This means that the "bullish" trend can resume at any time.
- Everything will depend on the results of the Fed meeting
In principle, it will be possible to see this resumption by consolidating the quotes above the descending trend line. Previously, it had a slightly different angle of inclination. The target for correction now remains at the level of $ 56,500, but even if this is reached, serious problems still arise. It should also be noted that there is currently another "hype" on the cryptocurrency market, which means that good reasons for the growth of the value of "digital gold" are not required. The asset is growing due to the constant influx of investors who also want to participate in the "bullish" trend and make money on it. And only the Fed can radically change the mood of traders. In particular, the Fed can only announce on November 3 that it will begin to reduce the QE program by $ 15 billion per month. Here, it will make a huge difference in how the markets react. It can be recalled that the euro surged last Thursday and Friday despite the fact that, if there were still grounds for this on Thursday, then there is definitely no reason on Friday. In this case, the markets can easily and simply start getting rid of Bitcoin after the Fed meeting if they feel that monetary policy will only tighten now, and this cryptocurrency's potential to rise has been exhausted.
- Carl Icahn believes that inflation will contribute to the growth of Bitcoin
Carl Icahn, who is the billionaire and founder of Icahn Enterprises, said that the world was on the verge of a new crisis. "The crisis is inevitable because of the way the US prints money and how inflation spins. The rise in consumer prices has become pervasive and pervasive," said Icahn.
In regards to Bitcoin and its defensive properties against inflation, Icahn stated: "If inflation becomes rampant, then the first cryptocurrency will have value. There are many variables, but investing in this asset is very difficult anyway. " In theory, Bitcoin will only grow while inflation rises. However, this process can still end the Fed. According to Jerome Powell, inflation will drop by the middle of next year, and the QE program will be fully done. Therefore, the favorable period for Bitcoin is another 8 months. The question is, where will it be able to grow during this period of time?
The trend on the four-hour timeframe shifted to a downward one, as the price consolidated below the Ichimoku cloud. In this case, sales with the target level of $ 56,500 are now relevant. A consolidation below the critical line can be used as a new signal to sell. But if traders manage to consolidate above the downward trend line again, then buying with targets of $ 64,700 and $ 67,000 will become relevant.The material has been provided by InstaForex Company - www.instaforex.com