12.05.202117:55 Forex Analysis & Reviews: Reasons why bitcoin cannot continue to rise

Bitcoin still cannot continue to grow and is trampled around the level of $60,000 per coin. Ethereum, on the other hand, breaks all cost records and reached $4,300 per coin on Wednesday. Experts continue to understand why this is happening and whether it is worth waiting for new growth from bitcoin and when. The first thing that crypto experts pay attention to is that bitcoin is already too expensive. The more expensive an asset is, the more difficult it is for it to continue to rise in price. It should be understood that bitcoin is not a stock of Apple or Tesla, or any other company that cannot fall in price to zero (theoretically, although the latest crisis showed that even oil can be worth a negative value). Still, the shares are backed by the business itself, property, buildings, technologies, and production. But cryptocurrencies are not backed by anything. Therefore, the more this or that cryptocurrency grows, the more questions arise for it: how long will the growth continue? At the $60,000 mark, some investors simply start selling coins to lock in profits. Some investors are starting to transfer funds to Ethereum or Dogecoin, as they have much more growth potential than bitcoin.

But now there is no inflow of new investors in bitcoin. Because the price is too high. Experts also note that bitcoin now has no informational support. At the beginning of the year, bitcoin regularly grew on the tweets of Elon Musk or on the news about the entry into the stock market of a cryptocurrency exchange, or on data about Tesla and Microstrategy's bitcoin investment. All this supported the demand for bitcoin, and now there is simply no news of this caliber. Experts also note that there is now an "altcoin season", however, if there are no questions about the growth of Ethereum, then along with it, some cryptocurrencies are growing, which are generally frivolous instruments or were created as a joke. That is, many traders and investors are now playing with cryptocurrencies at roulette or sweepstakes. They no longer care what kind of cryptocurrency it is, who its creator is, what are its prospects. If it grows, capital flows into it. A striking example is Dogecoin, which is now showing crazy growth, because Elon Musk is already going to sell electric cars for this cryptocurrency, as well as send a mission to the moon, paying it in full for Dogecoin.

Technically, bitcoin has completed the upward trend on the 4-hour time frame. The quotes have consolidated below the upward trend line, and, from our point of view, this is a rather powerful signal to continue the downward movement. However, at the same time, BTC has already returned to this trend line and is testing it for strength from below. In any case, the upward trend in the short term has weakened for several days in a row, and we believe that a corrective scenario is still the most likely.