Saturday, June 3rd, 2023

Bitcoin is rushing to new heights, convincing that it is not 2018

Bitcoin continues to convince market participants of the prospects for continued growth. Over the past day, the coin has gained 4% and is trading around $57,250. Over the past 7 days, bitcoin has grown by more than 18%. It seems that at the moment they are trying to inspire the market with the idea of starting a new stage of growth, which will lead BTC to another historical maximum with a likely culmination of growth by the end of 2021.

Bitcoin convinces that the peak is not passed, Bitcoin convinces that the peak is not passed

Within the framework of this case, there is an attempt to draw analogies with the end of 2017. The only difference is that now $20K has become the bottom, desired by many bears and those who want to enter the asset at a more adequate price.

The idea of growth is now fueled by the news factor, which is the expectation of SEC approval of bitcoin ETFs in the United States. This is a long-standing and very desirable factor that can have both a positive impact on sentiment and may well push for profit-taking, if the participants of the crypto market clearly see that the regulator continues to put a spoke in the wheels of this tool.

The bitcoin dominance index shows gradual growth and is now at around 45.8%, reflecting the tendency of market participants to invest in the market leader. In such bullish cycles, bitcoin is often almost the sole beneficiary of financial flows, while alternative cryptocurrencies attract increased demand already as part of the end of the next phase of the rally, after which a broad correction may begin.

However, there are news factors in the context of altcoins. For example, it became known that a large cinema chain AMC is starting to accept Dogecoin as a ticket payment. Of course, this is another way to attract attention to cinemas at the expense of cryptohypes, hardly anyone will actively use this method of payment. However, in the end, everyone wins, as the DOGE coin received its price momentum and showed growth again.

At the same time, the US Senate voted for a temporary increase in the debt limit, which has a positive effect on stock market sentiment. Since bitcoin is now actively correlated with what is happening in the traditional financial market, it is quite possible to expect that the coin, at least, will not face the pressure of sales from large capital.

The immediate prospects of bitcoin, and after it the entire crypto market, will depend on how successfully market influencers will be able to “sell the idea” of the beginning of a broad and large-scale growth of the crypto market. We don’t see any major fundamental factors right now, and, of course, in many ways the market is facing manipulation again, and entering bitcoin at these price levels is an extremely risky decision.

One thing can only be said with relative certainty:by the end of 2021, we will see new ups and downs of the crypto market, as a result of which the rich will become richer and the poor will become poorer.