Bitcoin is at Risk of Getting Stuck Around $6000

Bitcoin continues to develop the offensive, closely approaching the important level of $6000. This is both an important psychological level and an area from which the first cryptocurrency began to collapse in November last year.
Alexander Kuptsikevich
Ethereum and Bitcoin, two golden cryptocurrency coins on black background

This week, growth momentum allowed Bitcoin to hit the level of $5,800, which since the end of 2017 has acted as an important support level. And this is a good bullish signal. As for technical analysis, Bitcoin can meet with insignificant resistance up to $6,050- $6,250. The Bitcoin almost nonstop dropped from $6,250 to $3,500. Most often this suggests that recovery can also occur without significant difficulties in the growth path. However, there are a number of important levels in the area above $6,050. If the market gets stuck in them, this will be the first signal of worsening prospects.

The reason for the recent growth momentum can be considered rumors that the world’s largest investment company Fidelity with assets of $7 trillion is going to launch crypto trading services for institutional investors with a focus on Bitcoin. The company did not confirm this directly, but recently conducted a survey of 400 institutional investors. The survey showed that half of the respondents want to invest in digital assets.

The growth of transactions in the network indicates the return of interest in Bitcoin trading. In April, their volume exceeded $130 billion, which is the maximum since June 2018. The market capitalization of BTC for the first time since November 15, 2018 exceeded $100 billion at the beginning of the week, whereas by Tuesday this value is almost at $105 billion.

Another positive impulse for the market was the news of the CFTC’s intention to approve the launch of Ethereum futures contracts (ETH), which in theory will lead to the influx of institutional funds. On this news, the ETH rate jumped by 10% in the last 24 hours and is trading at around $177. It should be noted that the ether grew along with the entire market, and since the end of January, the main altcoin managed to add almost 70% in price.

This article was written by FxPro

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers