The picture of recent months is especially visible on the 4-hour timeframe. Firstly, it is clearly seen that the quotes in recent months are strictly between the levels of $29,700 and $40,700. That is, we have a horizontal channel, albeit a fairly wide one. Local trends are regularly formed within this channel. For example, the last downward trend (marked with a downward trend line) ended just yesterday as the price broke it. Thus, at this time, traders have the right to expect bitcoin's continuous growth approximately to the middle of the horizontal channel, that is, to the level of $36,500. Despite the fact that bitcoin has been growing for five days in a row, we do not believe that all of a sudden good prospects for the coming weeks are opening up. By and large, the only thing that has happened recently that could support the demand for bitcoin is The B Word conference, at which the head of the Ark Invest investment fund Katie Wood, the CEO of Tesla and Space X Elon Musk and the head of Twitter Jack Dorsey spoke. It was their comments that could spark the demand for Bitcoin. "Could" - because it is not 100%. By and large, the comments of Jack Dorsey and Katie Wood are not very important. For example, the head of Ark Invest said that bitcoin will become much more energy efficient than the mainstream financial services and gold mining industries. She praised the transition of bitcoin from non-renewable energy to "green". In her opinion, many investors support the principles of "green energy", and bitcoin will allow payments to residents of those regions where there is no banking service. Jack Dorsey, in turn, said that the main idea of bitcoin is that there is money that is not controlled by states. According to Dorsey, bitcoin can and should become the global currency of the entire Internet and be available to everyone on the planet. The head of Tesla Elon Musk, in turn, said that, perhaps, it was his company that had a negative impact on the growth of energy consumption. After Tesla announced the purchase of bitcoins, its price increased significantly, and the volume of mining increased. However, according to Musk, any green energy technology does not make bitcoin mining 100% clean. All the same, there remains a fairly large number of miners who use the electricity obtained from burning coal - "the dirtiest energy source in the world." Musk also noted that he and his companies Tesla and Space X own bitcoins and conduct transactions in cryptocurrencies, and in the near future the ability to pay for Tesla electric cars with bitcoins may return. All this news had a favorable effect on the cryptocurrency rate, but how much bitcoin will grow on it? Hardly long...
Technically, on the 4-hour timeframe, bitcoin quotes began a new upward trend within the horizontal channel of $29,700-$40,700. Thus, the first target is now the level of $36,500, and the next $40,700. We are skeptical about bitcoin's new growth, but now all technical factors speak in favor of its appreciation. There is no upward trend line at the moment, but in any case, we can expect a new fall a little later.
The material has been provided by InstaForex Company - www.instaforex.com