Bitcoin rose by $5,000 in just a few hours on Sunday (or rather, on Monday). Thus, it turned out to be near the upper border of the side channel, which we have repeatedly called. Although such a rapid growth of the quotes of bitcoin was not expected, we still considered the option with a rise to the upper limit of the channel of $29,700 - $40,700. Thus, in some ways, it is good that bitcoin soared to the upper limit of the channel so quickly. Now, the situation created around bitcoin can be resolved much faster. If the cryptocurrency overcomes the level of $40,700, the chances of continuing the upward movement will increase several times, despite the fact that the fundamental background for bitcoin remains quite weak. However, this does not mean that there can be no growth in principle. It should be remembered that even if the news is absolutely negative, bitcoin can grow at any time, because it is market participants who control bitcoin, and not the fundamental background. It's just that it is usually the fundamental background that influences the mood of market participants. However, nothing prevents traders and investors from starting powerful purchases of cryptocurrency again and raising it to absolute highs once again.
Today, on Monday, it is also necessary to understand as soon as possible what happened in the world that the BTC rate soared up that night. It is unlikely that these are the consequences of the same conference where Elon Musk, Katie Wood, and Jack Dorsey spoke. So, most likely, something important happened. The question is, will this crucial happening continue to push the cryptocurrency up further, or will the price turn around near the upper border of the side channel and start a reverse movement to the level of $29,700? It can be recalled that most cryptocurrency experts have recently been inclined to believe that bitcoin will continue to become cheaper in 2021. The reasons were the repression of miners in China, uncertainty with the tightening of cryptocurrency legislation in the United States, and the ban of bitcoin in some countries of the world. And by and large, nothing urgent has happened yet. The price continues to remain inside the same side channel in which it spent more than 2 months before. Thus, you should definitely not panic. The correction scenario for bitcoin remains the main one at this time.
"Technically, bitcoin bounced off the level of $29,700, so it can now continue to move up with the target of $40,700." This is yesterday's forecast phrase. As you can see, it has almost come true, since bitcoin reached the level of $39,670 today. Thus, today, the level of $40,700 can be worked out. In case of a rebound, "digital gold" will remain inside the side channel and begin a new round of downward movement to the level of $29,700. If the level of $40,700 is overcome, the upward movement will continue with the target of $43,852.
The material has been provided by InstaForex Company - www.instaforex.com