March 8, 2021

Prerequisites for the further growth of the bitcoin rate

Prerequisites for the further growth of the bitcoin rate

The prerequisites for a new jump in the BTC / USD rate werealmost all the same that contributed to its previous growth: an upward trend, high demand exceeding supply, large investments in bitcoin by large market players.

After the growth of the exchange rate to $ 48.2 thousand.on the news of Tesla's acquisition of bitcoin for $ 1.5 billion, there was a correction to $ 44 thousand, followed by a return to the $ 48051 level with further testing of the level against the backdrop of a narrowing price corridor and increased pressure. Ultimately, there was a breakdown of the resistance level and further progressive ascent to $ 50 thousand.

We can say that this line was taken fromthe fourth attempt, after which there was a rise to $ 52 thousand. It was followed by another sideways correction, which allowed market makers to gain the necessary level of liquidity in order to continue the upward movement. Then there was a jump already above $ 55.5 thousand.

Features of the current trend and future prospects

As we can see, the situation from the point of view of the graph inrepeats to a large extent: a jump, a sideways or downward correction, the next jump, and so on. This can continue for quite a long time, since the level of capitalization of bitcoin allows it.

In the short term, we already expectreaching the target level of $ 57111, which until recently was the medium-term target. But with the current growth rates, medium-term targets quickly become short-term, and long-term ones - medium-term. Therefore, we revised our mid-term forecasts based on the 2017 upward wave. The new target is the 3.618 Fibonacci retracement level at $ 66361.

As the BTC / USD quotes move to this markwe expect local corrections at resistance levels. One of these levels could be $ 57111. A probable decline from this mark could provide an opportunity to open new long positions. At the same time, one can also consider corrective support levels on the four-hour timeframe as potential entry points.

At the moment, we are seeing support levels inaround $ 55,251 and $ 52,124 based on CEX.IO trading data. Also, the 20-period four-hour moving average may provide support for BTC / USD, as it happened on February 13 at the $ 46,733 line and on February 16 at the $ 47,963 level.

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