The crypto market flagship overcame the key $21,000 supply area and reached a three-month extreme.
According to experts, the last couple of weeks buying activity is clearly showing signs of recovery. The past year has been a really tough one for the digital asset industry, with Bitcoin itself down 65% in price. But since the beginning of this year, Bitcoin has been steadily strengthening its position.
Experts at Credible Crypto noted that many investors were caught off guard by BTC’s recent jump to $21,000. Most market participants are likely to wait for a correction to open long positions at better prices.
Specialists said: now there is a local activity of sellers, but it can hardly influence the balance of power. It is not excluded, that the market will leave bears behind and will make an attempt of growth up to $25,000.
The flagship cryptocurrency is showing clear signs of recovery. Therefore, we can expect bitcoin to continue to strengthen its position in the near future.
Earlier, an analyst under the pseudonym IncomeSpark commented on the prospects of the cryptocurrency industry. He said that this trading week will be important not only for the digital assets segment, but also for the stock market.
The specialist stressed: if investors managed to enter long positions in BTC before the bullish rally develops, it is better not to take any action, but just watch for further developments. Everyone who wants to join the bull run, it is better to wait for a certain rollback of quotes and only after that open long positions. IncomeSpark stressed that sellers are still active, but buyers in the current environment are very strong and will defend their positions.
Bitcoin Bitcoin (BTC/USD), having rebounded from the $16,500 support level since the beginning of the year, has grown by more than 25% and is trading above $21,000 today. This growth is primarily due to a psychological factor. As the British say: “The absence of news is already good news”.
Restrained optimism and thirst for risk returned to the markets. For the last two weeks all assets – oil, gold, silver, rare-earth metals, major currencies against the dollar, the S&P-500 index – have been rising. The question is, what’s next? Perhaps this is not yet the beginning of a serious recovery, the fall was too deep. Now it will be wise to use medium-term strategies in trading and pay attention to technical analysis.
“Crypto” has approached serious resistance. Further movement will depend on the overall stock market conditions. Do not forget that all probabilities are 50/50 and, of course, use stop losses.