11.05.202114:36 Forex Analysis & Reviews: BTC continues to fluctuate at $60,000 mark: analysis and forecasts

Bitcoin began the second quarter of 2021 on a pessimistic note, which turned into a real depression and a change in the general state of affairs in the crypto market. At the same time, the main asset managed to avoid an even greater fall and consolidated in the corridor of $54,000-$58,000. However, right now, the cryptocurrency is stuck at the above frontiers, and cannot overcome them.

Bitcoin made a certain attempt to break through the psychological barrier yesterday, but once again the asset's quotes fell to stable indicators of $55,000. The reasons for cryptocurrency fluctuations have not changed significantly. Bitcoin continues to recover from a very painful fall, and bulls' support at this stage is unable to break the bearish pressure. The latter, in turn, entered the asset at an acceptable level of $40,000-$45,000 and fix a profit, which prevents BTC from growing in price. In addition, the pressure is increasing due to the transfer of bitcoin to altcoins, which are more promising at this stage.

The institutionalization of the first cryptocurrency has dropped significantly. Part of the existing audience, under the guise of problems in the BTC network, moved to ETH, which is on the wave of success after the Berlin update. The main altcoin also caught the attention of the world community, which is why bitcoin sluggishly responds to positive news impulses. Do not forget about the cohort of institutions that play against the market sentiment. It is no secret that the BTC/USD pair has the largest number of longs among all cryptocurrencies, but large companies are playing against the growth of bitcoin and press any attempts to grow the crypto asset.

It is also worth noting that a real realignment of power is taking place in the cryptocurrency market. Bitcoin's dominance share fell to 42.4%, while ETH rose to 18.6%. This indicates a reorientation of a significant part of the market in favor of altcoins, which receive more development branches, updates, and growth prospects. This is also evidenced by the consistently high rates of bitcoin trading volumes in 24 hours - more than $80 billion - but the absence of any growth. This indicates the interest of retailers who are unable to change the situation around the asset. Therefore, over the past day, BTC fell back to $55,000, having fallen in price by 3% and there is no prospect that the cryptocurrency will resume its growth. Especially considering the growing interest in ether and other altcoins.

At the same time, there are also positive prerequisites around the first cryptocurrency, which may portend the consolidation of the asset beyond the $60,000 mark. The number of addresses, where thousands of bitcoin coins are concentrated, resumed the upward trend for the first time since mid-April. This could be a short-term impulse, but it could be a signal for renewed interest in the first cryptocurrency. However, there is no reason to hope for a quick increase in BTC/USD indicators, since the pressure of the market and bears on the asset is still too great. At this stage, overcoming the first cryptocurrency milestone of $60,000 and further consolidation above this mark can already be considered a significant achievement.