Bitcoin News Strong jump for Bitcoin, but with uncertain prognosis

Strong jump for Bitcoin, but with uncertain prognosis

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The main cryptocurrencies, especially Bitcoin, are recovering strongly from the shocks of recent days. For analysts, the signs of how it will continue are mixed.

The main cryptocurrencies, especially Bitcoin, are recovering strongly from the shocks of recent days, although the outlook is still uncertain.

Bitcoin is trading above $38,000 after El Salvador became the first country in the world to adopt this asset as legal tender. Bitcoin, however, is still a long way from its all-time high of almost $64,500 that it hit last April.

For its part, Ethereum (ETH) was trading above $2,500; Binance Coin (BNB), $368 and Cardano (ADA), $1.58.

Technical indicators provide mixed signals. Therefore, the trend remains indeterminate until there is a breakout or recovery from the short-term resistance zone.

Cryptocurrencies: invest or flee?

What can happen to Bitcoin? For some analysts, the cryptocurrency has not yet bottomed out, and will fall again before rising again and exceeding $50,000.

According to FX Empire, Bitcoin has been circling since its mid-May low, in what is called a triangle in terms of EWP (Elliott waves). Once the triangle, which from a technical analysis perspective is called a bearish flag, is complete, the price will break down and travel south about the same length as the width of the triangle, FX Empire explains.

Technical indicators (RSI5, MACD, MFI) establish a possible positive divergence, which means that the currency is moving down but with less force, momentum and money is moving back to Bitcoin. The latter is very important because liquidity drives markets, highlights Yahoo (NASDAQ: AABA) Finance.

Since financial markets are all about the odds of chance, the alternative is that Bitcoin will “only” rebound – in three overlapping waves – to around 50,000 for a bounce and then head lower again. Why? Because after five waves down, one must wait at least three waves back.

When asked by investors, Pablo Cabrol, a Bitcoin analyst, said in a dialogue for a site days ago that the collapse of the main cryptocurrencies “has already happened four times in 2011, 2015, 2017” and that they are “corrections.” He indicated that the news is very influential because “there is a very large informal question” within the market.

At the same time, he mentioned, among other causes, that “the mining farms are in China and China is proposing the regulation”, in addition to the “weather” problem and the “carbon footprint” issue. Elon Musk put it on the mat,” he described.

Santiago Lliul, another expert in cryptocurrencies, said last week that “there was a rebound in bitcoin” because “the markets are managed with fear and euphoria”. There are bears and bulls, some believe that the market is going to fall and others to rise, the analyst differentiated so that there are those who project that Bitcoin will continue to fall and others that it hit the bottom.

Despite steep declines in recent weeks, Coinbase, the global cryptocurrency exchange, reported unprecedented growth in the institutional market in the first quarter of 2021.

Investing revealed that since December 31, 2020, Coinbase’s institutional portfolios have risen 170%, from $45 billion at the end of the fourth quarter of 2020 to $122 billion at the end of the first quarter of 2021.

The data is key in this sector, taking into account that Coinbase serves more than 8,000 institutional clients, among which are hedge funds, asset managers, companies, pensions and foundations.

According to a study by leading analytics provider Apex: E3, this trend for cryptocurrencies was demonstrated in that institutional investors bought 132,594 Bitcoin worldwide in the first quarter.

“Over time we have observed a number of factors that have attracted institutional investors to this space, from hedging against inflation, diversifying company balance sheets and the desire for greater participation in the digital economy, including areas such as payments, payroll and cross-border payments. Customer demand is also playing an important role, “said Drew Robinson , Head of Hedge Fund Sales at Coinbase.

Tiffany Cleyton
Tiffany Cleyton is a The Advertiser Mirror correspondent who covers food, politics, business, trend, lifestyle, fashion, entertainment and worldwide news. Tiff is a talented girl of 21 years old who is fascinating with journalist work and music, also she loves to produce documentaries.

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