The leading RoboForex analyst Dmitry Gurkovsky outlines the possible trajectories for Bitcoin’s price.
The digital currency is actively recovering after a deep correction. For buyers, it was important to show a bounce off the support area around the $42,500 level.
Many investors are alarmed by the coin’s volatility; even large hedge funds are confident that once the moves ease, the number of institutional investors willing to put money into this asset will rise significantly.
Citibank analysts believe that a turning point arrives for Bitcoin, and the cryptocurrency could either establish itself as the world’s primary means of payment or end up in another speculative sell-off.
JPMorgan employees actively recommend their clients hedge against other asset types (such as stocks and precious metals), and allocate up to 1% of their portfolio holdings into Bitcoin and other digital currencies.
On the daily chart, the cryptocurrency staged another bounce off the area between moving averages, which still signals bullish momentum. A previous such move drove the coin’s price up by more than $29,000.
It may also be worth considering a rise in the asset’s quotes to the $72,000–$75,000 range. An additional signal in favour of further upward movement is another bounce off the RSI support line. The growth scenario would be negated by a break of the lower boundary of the ascending channel and a close below $42,950, in which case the downside target would be $29,135.
The rising criticism directed at it cannot stop the current rise in the asset’s price. Bill Gates is convinced that processing transactions on the Bitcoin network consumes too much electricity, not commensurate with the costs of traditional money transfers, which ultimately harms the environment.
Rakesh Jhunjhunwala, often dubbed the “Indian Warren Buffett,” urged regulators to ban the leading cryptocurrency in India, describing the asset as merely high-risk speculation.
Many investors believe that Bitcoin’s current aggressive price surge is merely a temporary effect driven by heightened interest from large investors. Ray Dalio noted last year that as cryptocurrencies grow and gain wider adoption, assets may face aggressive criticism and potential government bans. We are now witnessing a similar situation.
On the 4-hour chart, the quotes broke upward from the downward channel. The potential for a continued rise toward the $65,000 level remains. However, one should not rule out price growth only after returning to the breached boundary. A strong signal in favour of a rise would be a bounce off the RSI support line, which had previously triggered Bitcoin’s price gains when testing the support area.
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