The leading digital currency is now indecisive after reaching another record of $ 57,000. The market is carefully monitoring its dynamics, trying to forecast what trend will Bitcoin choose – upward or downward?
On Wednesday, Bitcoin broke through the level of $ 57,000, hitting highs for the last two and a half weeks. At the end of February, it formed a local bottom in the area of $ 43,000, and has been steadily moving up since then. In fact, the main cryptocurrency is ending this week with sharp growth, maintaining a positive attitude, despite temporary declines. Currently, the market capitalization of the main digital asset exceeds $ 1 trillion. This morning, Bitcoin slightly fell, reaching $ 55,724. Nevertheless, it is still trying to hold on to its won positions.
Bitcoin's dynamics balances between a very possible growth and a potential decline. Its supporters are more inclined to the first scenario, considering the digital asset as the main means of saving capital. They believe that this cryptocurrency can be used to hedge inflation risks and to the devaluation of the US dollar, which is possible under the Fed's current monetary policy.
Such a strategy may happen in the near future. Currently, Bitcoin is growing, despite weak data on the US consumer price index. Analysts believe that this indicates a low probability of inflation. At the same time, many experts consider investors' inflationary expectations to be a favorable event for BTC growth.
The rising concerns about inflation and the global economic recovery are forcing market participants to invest in safe assets like Bitcoin. Experts highlighted that the technical indicators of the main digital coin testify to the continued positive trend. Many of them are almost sure that Bitcoin will be able to reach new historical peaks in the near future. So, if Bitcoin breaks through the range of $ 57,000-$ 58,000, it will manage to reach the $ 65,000 mark and further rise.
At the moment, nothing is hindering the coin from moving upwards. Experts said that risks are not observed in the market that could bring Bitcoin down by 50% or more overnight. And although the leading digital asset is quite volatile and may plunge by 20-30%, which was recorded twice this year, experts consider this to be just a downward correction, but not a collapse. Therefore, they are confident that the cryptocurrency market will remain bullish in the near future.
The material has been provided by InstaForex Company - www.instaforex.com