Yesterday, bitcoin went out of the $ 6500- $ 7400 range, which it has been in since the beginning of the month.
Bitcoin has peaked since the collapse of March 12-13, tested $ 7700- $ 7800 and fixed above $ 7500. At the time of writing, the market capitalization amounted to $ 216 billion, the Bitcoin dominance index - 63.9%.
Out of the range occurred without correlation with the stock market, nothing special happened there. The S&P 500 did not reach even the beginning of this week, and by the end of the week it fell below 2800.
The cryptocurrency market is increasingly moving away from the correlation with the stock market and begins to live its own life.
Since the beginning of April, we have seen a steady increase in bitcoin with small pullbacks and an increase in lows ($ 5800- $ 6200- $ 6500- $ 6800- $ 7000). In the same way, capitalization is growing, which returned to values ​​before the collapse of March 12-13.
The events of March 12-13 freed the market from "weak hands", and this ensures the stability of Bitcoin to an unfavorable external background.
In addition, more and more people understand that the pandemic will decline over the course of several months, and the vaccine will be launched there. The consequences of the fight against the virus, primarily the infusion of huge amounts of money into a falling economy, will affect everyone’s life much more strongly.
People are actively looking for tools to increase funds. Many people choose Bitcoin, and this is a good choice.
The story with benefits for low-income Americans who ended up on Coinbase is very instructive. People with medium and high incomes will acquire bitcoin even more actively - they have something to protect against inflation, and they have a much larger reserve of available funds that can be spent on risky assets.
Bitcoin is expected in the range of $ 7,500- $ 7,800 this weekend and the conquest of $ 7,700- $ 7,800 next week.
What do the graphs say?
The breakdown of $ 7150- $ 7170 was followed by a sharp acceleration, and Bitcoin came to the medium-term target of $ 7738.
On an hourly timeframe, buyers are trying to gain a foothold above $ 7500.
In order to consider the entire growth from $ 7000 to $ 7738 true, and not the removal of short positions, Bitcoin needs to stay above $ 7388.
This level is the upper limit of the sidewall from which bitcoin came out. This is the area of ​​the previous trading, from which sellers always pressed the price down.
The level of $ 7388 coincides with the 50% zone on the Fibonacci grid, therefore, correction to this mark is possible.
If buyers keep the support level at $ 7388, the following growth targets: $ 8000- $ 8200.
In the event of a breakdown of $ 7388 and consolidation below $ 7263, there will be every reason to believe that this growth was the removal of short positions.
In this case, Bitcoin may again fall below the $ 7000 mark. This is currently an alternative scenario.
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BTC can fall below $7k but I think its bullish atm. $8k will be broken in next week imo. And move towards mid 9k. 14 days to halving! :)