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08.04.202117:07 Forex Analysis & Reviews: Temporary decline or beginning of a downward trend: why is BTC stuck at $58,000

Relevance up to 10:00 2021-04-13 UTC--4

The main cryptocurrencies have been in a state of active growth over the past week. The crypto asset market has reached $2 trillion, and the great merit of this result is the activity of altcoins. At the same time, the indicators of the first cryptocurrency are at the usual levels of $57,000-$58,000 and do not show the prerequisites for the start of growth.

For more than a week, bitcoin has been trying to overcome a local correction and does not go beyond $60,000. Moreover, over the past day, a sharp decline in the BTC/USD pair has caused traders' losses worth $613 million. It is quite obvious that bitcoin is at a crossroads: either a springboard is being prepared for further growth and strengthening above $60,000, or a wave of correction will soon cover the cryptocurrency. At this stage ($57,000), the indicators of the digital coin are at an extremely low level of support, which is why the asset is not able to overcome and gain a foothold above $60,000. This can be clearly seen on the charts of activity of bitcoin indicators over the past week.

Exchange Rates 08.04.2021 analysis

Based on the fact that bitcoin is steadily recovering its positions above the $55,000 mark (even with sharp falls), the market is at the stage of price consolidation in the region of $50,000-$60,000. Under favorable conditions, this may indicate the creation of an airbag for the asset with the next attempt to overcome the $60,000 mark. At the same time, there were reasons for excitement based on a sharp decline in the entire market on the eve of April 8. This was due to the excessive growth of XRP quotes, which provoked a local correction in the market. This particularly hit bitcoin, which was already in the stage of correction due to its own failure when trying to overcome the $60,000 mark.

Exchange Rates 08.04.2021 analysis

Exchange Rates 08.04.2021 analysis

Despite this, BTC remains an extremely important and multifunctional asset. For the most part, it is thanks to bitcoin that a positive background is formed around the cryptocurrency market. From recent examples, it is worth remembering the next investment from MicroStrategy, as well as the active development of bitcoin in sports organizations (NBA basketball clubs and football clubs of the English Premier League). Also, bitcoin is the leader among cryptocurrencies in terms of implementation as a means of paying for goods and services in Visa and MasterCard payment systems.

The lack of stable growth, a decrease in positive dynamics, and the inability to overcome the $60,000 mark are still part of the development of BTC. Despite constant pullbacks and a decrease in daily trading volume, bitcoin continues to remain in an upward trend. A possible reason for doubt may be the rise of stock markets, as a result of which large companies will exit the asset and overturn its indicators to $45,000. In this case, we can talk about the beginning of a downward trend or sideways movement based on the manipulation operations of the holders of the first cryptocurrency. However, at this stage, it is safe to say that the BTC position at around $50,000-$55,000 remains unshakable and soon the quotes of the first cryptocurrency will resume growth.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Artem Petrenko,
Analytical expert
InstaForex Group © 2007-2021
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