Today marks the formal end of crypto winter, as the bitcoin price has broken over a very critical resistance level of $30,000. Currently, the bitcoin has more well recovered 50% of its losses from its all-time high, and it is up more than 100% from the lows of its crypto winter. This is a significant turnaround for the cryptocurrency.
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The present price movement is very likely to generate a lot of news coverage, and it is very likely to cause investors to experience fear of missing out (FOMO), despite the fact that many investors have already lost the opportunity since the price has regained its previous losses. But, this does not imply that the time has come to be a strategic investor in crypto assets. The reason for this is because we think that the path of least resistance for Bitcoin is skewed to the upside, and that the present surge is simply the beginning of what is to come.
Dollar Losing Its Strength
The phenomena of the dollar serving as a reserve currency has been rattled, and many people have already begun to look at alternative currency pairings in order to begin trading oil and other commodities. This is due to the fact that the dollar’s status as a reserve currency has been challenged. A number of nations, including Russia, Saudi Arabia, China, and Iran, have recently begun to place less faith in the dollar, which has the effect of making bitcoin seem more appealing. Having said all of this, we believe that it will be quite some time before we might see governments trading their trades using bitcoin, but in the meanwhile, it is the best available option.
Bitcoin Is a Beast
Bitcoin has shown once again that it is a type of beast that can come over and rebound from any kind of setback. This is something that Bitcoin has proved to those who do not believe in Bitcoin. Keep in mind that the present upswing in the price of bitcoin is occurring at a time when authorities have taken the most stringent stance possible against the cryptocurrency business.
But, we believe that the position that is now being taken by the politicians in the United States is really now supporting Bitcoin, since institutional investors have finally gained a clearer road to participate in Bitcoin. The unbelievers who referred to bitcoin as “rat poison” are going to have to answer the issue of whether or not they will come around. Nevertheless, now that rules are becoming clearer, companies will be able to do things in a more open manner. The reality is that during the last bull surge, we had numerous doubters begin the process of selling bitcoin to their customers via various third-party solutions.
Investors in cryptocurrencies are now faced with the additional concern of what the price action of cryptocurrencies in the future is going to look like. The price must maintain its upward trajectory from here on out without suffering any kind of setbacks in order for this to be considered a successful scenario for us. When looking at the momentum, it seems that it is quite probable that the price is likely to continue moving higher. Yet, it is possible that we will see some profit taking at the present level. This is a very real possibility. This indicates that the next significant level of resistance is going to be 50,000, but in order for the price to reach that level, it will first have to overcome lower levels of resistance, such as 40,000.
It is probable that as we go into the weekend, we will see some momentum building up, and that on Monday, we will see larger changes for bitcoin—just like we saw previously. The weekend will be very crucial for bitcoin once again.