The $44,000 support withstood, Bitcoin recovered to $50,000. What's next?

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There has been a relative lull in the cryptocurrency market over the past few days. Bitcoin was adjusted, and so were the other cryptocurrencies. Yesterday, bitcoin began to rise in price again and returned to the level of $50,000 per coin. However, after the quotes fell from the level of $59,000 per coin, such an upward movement cannot be considered an unambiguous resumption of the upward trend. Unfortunately, the main market drivers are silent. The last few weeks were held under the auspices of Elon Musk and MicroStrategy, who talked about bitcoins, invested in it, and generally put the cryptocurrency on the front pages in every possible way. However, there is a lull at the moment. MicroStrategy said it would invest an additional $15 million to bitcoin, but what is $15 million when the company has already invested more than $1 billion? From our point of view, the most important thing right now is the fact that the $44,000 support has held and the price has not managed to gain a foothold below it. It is this moment that can become the starting point for a new round of upward movement. There is no point in forming various trend lines and channels now. There is an avalanche-like fall, and we have an avalanche-like growth. That is, a movement that is constantly accelerating. Therefore, the longer such a movement carries on, the less likely it is to continue. In the case of bitcoin, making any predictions is a thankless task. Many believe that the cryptocurrency will grow to $100,000 per coin in 2021. If the US government continues to pour trillions of dollars into its economy, some of this money will definitely flow to the cryptocurrency market, which will cause an increase in demand and an increase in the price of digital assets. Also, much this year will depend on what measures to regulate the cryptocurrency segment will be taken by the largest central banks? For example, the Fed or the ECB. Recall that central banks want to either completely get rid of cryptocurrencies, or depopularize them as much as possible, that is, to stop using them for traders. But this is not so easy to do. Therefore, the war against bitcoin and its brothers will continue. But the most important moment will come when buyers think that they have already had enough profit and now need to sell, not buy. It has already been mentioned that bitcoin is a great investment tool. What other instrument shows such volatility and such profitability? But this is not money, not a means of payment, and it does not have many qualities to keep savings in it and pay for purchases with it daily. This means that investors will start to get rid of it sooner or later, since bitcoin is not really worth anything, it is just a piece of code.

The material has been provided by InstaForex Company - www.instaforex.com

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