06.05.202117:26 Forex Analysis & Reviews: The news background is conducive to growth, but BTC continues to fluctuate: reasons and forecasts

The main cryptocurrency can confidently bring the first months of 2021 to its asset, as its indicators jumped by 97%. At the same time, the coin started the second quarter of this year very uncertainly and was mired in constant corrections. The situation was systematically aggravated by the news background, which remained negative and reduced the market's interest in cryptocurrency. And recently, the first crypto asset was on the verge of the largest correction this year, but the situation has stabilized.

The current week passes under the banner of uncertainty for bitcoin. This is reflected in the stable fluctuation of the BTC/USD pair quotes in the region of $52,000-$58,000. From time to time, the asset gets close to the border of this corridor in an attempt to test the psychological mark of $60,000. So far, however, these attempts have failed. The main factor holding back the growth of bitcoin quotes is the reorientation of the main purpose of using the asset. Most large companies are trying to make the most from the "altcoin spring". To buy less significant cryptocurrencies, market players use bitcoin, which has recently lost its investment attractiveness due to a clear oversupply in the market. In addition, excessive institutionalization played a bad joke with BTC. Large companies prefer to buy coins and fix profits in them, which seriously affects the growth of quotes.

The situation is not very good with retailers, who lose money on price hikes and are not ready to take a wait-and-see position. Because of this, each retest of the $60,000 mark can end in a serious sell-off, provoked by impulsive decisions of retail traders. Moreover, with such a development of events, the altcoin market is also not immune from such a scenario and can significantly sink in the indicators. Among the more global reasons for the uncertainty of bitcoin, it is also worth highlighting the high concentration of long futures positions. This makes the cryptocurrency more unstable and subject to constant price spikes, as well as increases its dependence on the sometimes impulsive behavior of market participants.

Despite all the negative aspects, an excellent news background has formed around bitcoin, which will allow the asset to once again approach the $60,000 mark. The main positive announcement was the news that the crypto custodian company will begin to cooperate with the large financial and technical company Fidelity Information Services. Thanks to this, customers of hundreds of local banks in America will have access to transactions with bitcoin. Also, representatives of the Latin American company Mercado Libre announced the purchase of the first cryptocurrency worth $7.8 million to strengthen their own reserves.

Thanks to the positive news background over the past day, the bitcoin indicators came close to the safe line of $58,000. During the day, the asset rose by 5% with significant market support and increased daily trading volumes – $90.5 billion. The capitalization of BTC has again reached $1 trillion, and the asset may soon attempt to overcome the threshold of $60,000. However, with the current state of affairs in the market and the rather dull mood of the bulls, you should not expect a powerful impulse and the subsequent growth of bitcoin indicators.