07.10.202107:10 Forex Analysis & Reviews: New wave of hype on Bitcoin

Bitcoin has risen by $ 15,000 in just a week, and that's everything to know about its current movement. It is clear that when traders see the cryptocurrency rise by $ 15,000, they immediately start looking for the specific news that could lead to such huge growth. However, this growth can be attributed to almost any message that was released over the previous week. For example, Jerome Powell said last week that his office is not going to follow in the footsteps of China and ban all cryptocurrency transactions. In principle, Bitcoin's price growth began already then. Then yesterday, it became known that SEC Chairman (US Securities and Exchange Commission) Gary Gensler said that there are no prohibitions in the plans of his department either. It turns out that when the markets received these two messages, they immediately rushed to buy Bitcoin. Now, what will happen if Treasury Secretary Janet Yellen speaks tomorrow and says that her department also has nothing against Bitcoin? And then next week, Joe Biden will speak and say "let's spare Bitcoin"? If all of this happens, will we see Bitcoin around $ 100,000 per coin?

It is worth noting China's bitcoin banning, where a huge number of miners were concentrated and a huge number of operations took place. This cost bitcoin less than $ 15,000. But here, we also have the two speeches by Powell and Gensler, which led to the growth of Bitcoin by $ 15,000. That's is the power of hype.

From our point of view, a new wave of hype on Bitcoin has begun. It started at the level of $ 30,000. If one can recall, the validity of such a strong growth was questioned then, when many cryptocurrency experts were betting on the continuation of a much more logical correction. However, major market players initially kept Bitcoin from declining below the level of $ 30,000, and from further fall below the level of $ 40,746. It should be noted here that the price tried to consolidate below six times.

"Our approach is completely different," Gary Gensler said during a speech to the US Congress. "The question is how do we integrate this cryptocurrency into the existing framework for protecting investors and consumers. How should we interact with other regulators to facilitate the work of the Ministry of Finance on combating money laundering and tax administration," he added.

Gensler was also asked about the interpretations of the concepts of "Bitcoin" and "Ethereum", but the head of the SEC refused to give an exact answer to this question. In principle, the markets didn't really need this answer. The main thing is that Gary Gensler said that the SEC will not ban the main cryptocurrency.

There is still an upward trend in the four-hour timeframe, and the price already broke through the level of $ 51,350. As previously mentioned, one should have bought bitcoin with a target of $ 56,500. Bitcoin's fate for the next few days will be determined again around the level of $ 56,500. After breaking through it, the price will rush to its annual highs around the level of $ 65,000. A rebound is the beginning of a new correction with a target of $ 51,350.