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07.05.202118:58 Forex Analysis & Reviews: Bitcoin will not fall below $40,000. Forget about crypto winter

Bitcoin continues to trade sideways at 52,929.55 - 57,513.35 between the two blue dotted lines. Moreover, the volatility of the main cryptocurrency slowed down even more, as the BTC/USD quotes found local support at the level of 100 on Fibo Expansion ($55,777.08 per coin). Once again, returning to the resistance of 57,513.35, its price may finally continue to rise if it breaks this level and consolidates higher.

As for the global outlook for bitcoin and the market as a whole, opinions, as always, are very different. It is not the first time that the Bank of England Governor Andrew Bailey has stated that Bitcoin investors are at risk of losing all their money and should be prepared for this. Some experts call the main cryptocurrency "the mother of all bubbles".

Nevertheless, large investors still believe in digital assets and continue to invest large sums in them. This, by the way, is the main difference between the growth in 2017 and the current bullish rally.

For many, it is no secret that after such a strong strengthening in the market, at least a significant downward correction should occur. This, of course, is not a bubble and it will not burst (most likely). But it looks overheated at times. Especially when it comes to altcoins, including the acclaimed Dogecoin.

In one of the earlier reviews, we talked about the signs of crypto-winter and the expectations of a corrective collapse. But there is also an opposite opinion. For example, Dmitriy Sheludko, a specialist and CEO of the Biconomy.com exchange from Canada, believes that such a concept as crypto winter is a thing of the past forever.

He notes that the recent growth is entirely due to the large market participants. Institutional investor money such as funds and banks entered this market forever. The perception of bitcoin and other digital assets has changed. Now large banks are looking for opportunities to provide their clients with cryptocurrency products one by one. This has become the norm and a new reality. Consequently, there will be no big rollback.

Large investors will now struggle to keep Bitcoin above $40,000 per coin. Now everyone benefits from its further growth. And new waves of renewal of historical values are likely to begin even before the fall.

Sheludko also notes that Ethereum may well grow to $5,000. But it's worth remembering its correlation with bitcoin, so reaching this mark is likely after the summer too.

If you focus on technical analysis, then the level of $41,980 per coin serves as a strong support for the main cryptocurrency - the maximum from January 8. And the nearest medium-term target for growth remains the area of $66,000 - near the resistance of the ascending channel 43,033.38 - 47,017.82 - 61,759.10 from February 28.

Exchange Rates 07.05.2021 analysis

*Prezentowana analiza rynku ma charakter informacyjny i nie jest przewodnikiem po transakcji.

Ekaterina Kiseleva
GK InstaForex © 2007-2021
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