30.03.202111:13 Forex Analysis & Reviews: The pressure on Bitcoin is postponed

Bitcoin has started a new round of upward movement, again failing to overcome the important level of $52,300, where the Kijun-sen line of the Ichimoku indicator passes. So for the time being, the correction scenario is postponed again. But from our point of view, a serious correction for bitcoin has been brewing for a long time. The two most important factors have already been mentioned before: the time factor and the factor of weakening the bullish trend. It is these two factors that can provoke the beginning of a strong correction, at least in the support area of $43,000-44,000 per coin. However, without technical signals and confirmations of these expectations, you should not sell bitcoin in any case. It has been mentioned before that even any currency (a much more stable instrument) can move in any direction for a very long time in the absence of visible reasons. A striking example of this is the British pound sterling in the last year. What can we say about cryptocurrencies, which are currently the most volatile investment tools. Thus, bitcoin may well reach the $100,000 per coin mark in the coming months. To do this, it is necessary to increase the demand for it even more. The growth in demand can be ensured by the influx of new institutional investors, due to the "hamsters" who rush to invest the money received from the American authorities. This is an absolutely real scenario. The whole essence of the movement of the bitcoin exchange rate, in fact, is based on whether the market believes in a further rise in the price of the "digital gold" at this time or not. It is believed that bitcoin is long overdue to go down. However, it is important to remember that a clear downward trend and signals must be formed for this to happen.

Meanwhile, the Fed is creating favorable conditions for Bitcoin to continue strengthening. Recall that it is the central banks that are considered the most likely opponent of all cryptocurrencies, since no government wants to have an uncontrolled currency. Central banks and governments can either ban the use of bitcoin (as it is now in India), can impose high taxes on it, or can introduce their own digital currencies to create competition for cryptocurrencies. So far, the Fed is not going to do either one or the other. The head of the Federal Reserve, Jerome Powell, said the other day that America will not rush to create a "digital dollar." According to Powell, the creation of a digital dollar will have serious consequences for the whole world and in this matter you need to be very careful. Approximately the same opinion is shared by the authorities of the European Union, as well as the ECB. This means that in the next few years, Bitcoin and its counterparts are unlikely to have a state competitor. This is undoubtedly good for the prospects of the world's number one cryptocurrency.

In technical terms, Bitcoin was on the verge of breaking the $52,300 level for several days. But in the end, the bulls still held the initiative in their hands and a new round of upward movement began. Now, the nearest target for growth will be the previous local maximum – $61,600. However, we still draw the attention of traders to the fact that the fuse of buyers is clearly drying up. They need either a new influx of investors, or a sharp drop in the supply of bitcoin in the market. Otherwise, a powerful downward correction will begin.