What is your forecast for the BTC / USD instrument?
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makes another attempt to test the important resistance level at $ 40K. Over the past 24 hours, the benchmark cryptocurrency has grown by 4%, approaching $ 39K. It is too early to draw final conclusions, however, the renewal of the outgoing week's highs can be called a local victory for the bulls.
Over the past two weeks, there has been a sequence of declining peaks on the Bitcoin chart, and this attempt to break this trend should be considered a bullish signal. If it develops, by the end of the week we may see a clear revival of institutional buyers, followed by retail investors during the weekend.
Altcoins are supporting the first cryptocurrency in a quest to overcome the now-important $ 40K resistance level. The leading altcoin Ethereum (ETH) shows a 5% growth over the course of a day and is trying to return to $ 3K. Binance Coin (BNB) jumped 10% and is trading around $ 413.
The overwhelming mass of altcoins is now in the green zone. Thus, market participants can demonstrate their willingness to return to buying against the background of the belief that the recent market decline was still a deep correction and not a wide trend reversal.
Environmental movements and regulation have become the main drag on the current cryptocurrency rally. The current corporate culture implies the need to follow various global trends, including in relation to the environment. After all, if Elon Musk was forced to abandon support for bitcoin due to corporate pressure, it means that other large investors will have to take into account the opinion of the “greens” in their decisions, who consider Bitcoin “not environmentally friendly”.
Nevertheless, the more substantial legitimacy of the current rally due to the participation of large capital within the framework of legal schemes suggests that such issues will still be resolved in favor of continuing to make a profit.
Regulation also opens up an interesting field for analysis. Everyone knows China's position on cryptocurrencies. Beijing once again unambiguously indicated an exit for the cryptocurrency market. However, there are signs that Chinese investors are continuing to work, which speaks to us of the complexity and ambiguity of the current situation. The market has become significantly more global, and bitcoin was created precisely in order to bypass any firewalls.
All market participants come to understand that as a result, Chinese investors may not formally trade in China, miners can move to any other jurisdiction where it is cold and cheap energy, and the only really vulnerable place of cryptocurrencies is the need to be tied to national currencies. That is why the Fed and the ECB do not make loud statements, do not prohibit or threaten market participants, making it possible to build infrastructure.
The authorities of developed countries understand that they need more statistics to make decisions, in addition, China for them acts as a testing ground for an aggressive policy against cryptocurrencies. It can be assumed that in the current format the market will fully live another cycle of decline and growth, which opens up great opportunities for investors.
Source: World news 2021 breaking news. |
