Trader named the reason for the growth of bitcoin and told what to expect

Bitsgap platform analyst Dmitry Perepelkin talks about the current market situation.

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April 29 marketconfidently broke the level of $ 7800, which ishistorically important price barrier. The dynamics of the downward trading volume in the growing market is broken. This is evidenced by the increase in purchases on the pump from $ 7,800 to $ 9,000.

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Moving averagesEMA 9AndEMA 200were quickly broken, this is clearly visible in the chart below.

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The market is very overheated, such a conclusion can bemake on the basis of a sharp increase in lending rates margin positions. At Bitfinex, the daily percentage reaches 0.14%, which is 4.2% per month. Such bets are very rare. The last time this was in early January and February 2020.

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At BitMEX, the trading volume over the past 24 hours has amounted to 813 thousand BTC. These are very high rates for the margin market.

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Most likely, the growth is associated with the upcoming halving,when the block reward drops to 6.25 BTC. The growth of BTC supply in the market will decrease, and demand is supposed to remain at the current level or even continue to grow, which mathematically should cause a price increase.

Since 2009, two halving has already taken place. As we see, the price continues to rise. You can find a good chart on TradingView that shows parabolic growth.

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The second argument, which partially explainsgrowth is that some countries are ready in May to lift quarantine restrictions. Large market players, such as the United States, continue their quantitative easing (QA) program, saving the market from Covid-19.

When the market is very overheated, and a huge number of people try to jump into the outgoing train, usually a rollback occurs.

We see how Bitcoin tried to break the level.$ 9,200, after which it rolled back to $ 8,500. Now the price fluctuates in this range, leaving long shadows on the candles. Volatility is high, and it can easily shake those who enter it with stop-loss orders close to the opening price out of the market.

Best of all, wait for the close of the daycandles to further determine the channel of trading. After such rapid growth, a drop to $ 8100 is also possible. The graph already shows that traders began to take profits, and the price begins to roll back down.

Attention!

Financial market forecasts are privateopinion of their authors. Current analysis is not a guide to trade. ForkLog is not responsible for the results of work that may arise when using trading recommendations from the submitted reviews.