Positive Bitcoin Growth Expectations of Investors
Image by Sinisa Maric from Pixabay
The day turned out to be the best for the cryptocurrency market — bitcoin grew by more than $ 3000 and set a new all-time high at levels above $ 23,700, thus reaching the previously designated target much faster than I expected.
At the moment, the first cryptocurrency has reached an all-time high, enters a small correction, and is trading around $ 23,000.
It will not be easy to outline the prospects, since earlier bitcoin has not yet cost so much, and the zones of interest of buyers and sellers have not been formed. Nevertheless, the “digital gold” has already broken through the “ascending triangle” formation, and we can be guided by the statistics we have.
Graph: TradingView
A strong upward push is a good thing for the entire market and the bulls in particular, but the difficulty lies in the fact that it has generated a large amount of open interest in the long, and big capital really does not like this alignment, which is why it uses squeezes.
Often we see 2–3 growth waves at once, and only after that a significant correction. I believe that the price can reach $ 25,000- $ 26,000, and then plummet to $ 20,000- $ 21,000. This will help to collect more late buyers, as well as make people believe in the serenity of the current growth.
In an alternative, but less likely scenario, a fall is possible right now. But the movement to mirror the $ 19,500- $ 20,000 zone will be much more systematic.
We saw the first option on example number 1 (graph below), and the second on example 2, respectively. Please note that for the implementation of scenario number 2, the price has gone too high, therefore, its probability is much lower.
Graph: TradingView
Speaking of longer-term prospects, it should be noted both the inflow of a large amount of capital into the cryptocurrency market and the high organic growth of bitcoin — there are no significant signs of a reversal of the current upward trend. Any significant falls are quickly bought back, and the nature of such downward movements has a speculative structure.
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