Bitcoin: there are no prerequisites for the development of a correction


After the correction from new record highs around $ 67 thousand, last weekend the bitcoin exchange rate could not regain what it had lost, but trading took place in a stable mode – quotes did not leave the tight range, and intraday changes were insignificant. On Monday, the main cryptocurrency wins back the mark of 62 thousand dollars and is already striving for 63 thousand. However, it is too early to talk about the development of an upward momentum.

After winning back the news about the launch of the ProShares Bitcoin Strategy ETF fund, bitcoin moved to a technical pullback from a psychologically significant level, which looks logical, given the desire of players to lock in profits at historical highs. An additional factor supporting the bull market is a factor that is expressed in the growth of inflation fears. Expectations of further price growth contribute to increasing the attractiveness of the digital currency as a means of hedging inflation risks. This factor also played a significant role in the recent rally in the cryptocurrency market.

Meanwhile, the technical picture still looks good.

At the weekend, bitcoin violated the integrity of the level of 60 thousand, but closed even above 61 thousand. The key signal for maintaining the bullish trend is the fact that the price is held above the ascending 20-day moving average, which has been acting as support since the beginning of this month and today is located slightly above the $ 59 thousand mark.

In the absence of shocks in the industry or frankly negative news and comments from influential individuals and institutions, the growth of digital assets may develop this week. At the moment, there are no prerequisites for a deeper correction, and after a possible consolidation in the range of 60-63 thousand, the flagship of cryptocurrencies can take a new acceleration and, breaking through the mentioned peaks by 67 thousand, get to the next psychological milestone at the level of 70 thousand.