FX.co ★ Bitcoin buyers still lack the strength to overcome $61,700

Yesterday, the bitcoin exchange rate maintained an upward direction, but once again failed to overcome the level of $60,000 and update its absolute maximum of $61,700. Thus, one can argue again that investors do not have enough strength to easily and simply overcome the previous maximum. Although, if you look at the illustration, you can clearly see that there were no special problems with overcoming each of the last three highs. It is likely that the upward trend is weakening and may end at any time. At the very least, a strong downward correction can be expected.

So far, investors are still keeping the bullish trend, but it is clearly visible how difficult it is for bitcoin to show growth now. It has already grown quite strongly in general. But it is still important to keep in mind that no currency or cryptocurrency or any other asset can maintain a steady growth forever. In 2020-2021, many large and institutional investors have invested in bitcoin. However, they also have a certain "ceiling" of demand.

The fundamental background is not too vital for bitcoin right now. That is to say, if the market now receives any hype news from Elon Musk or, perhaps, the statement of Jerome Powell that bitcoin will continue to develop regardless of the creation of a "digital dollar," investors would respond with new purchases of the "digital gold." But the problem for Bitcoin now is that investors are no longer ready to respond to different opinions with large purchases. Everyone understands that the US economy is recovering and the outflow of capital from the cryptocurrency market will begin sooner or later. Moreover, the future of bitcoin is still vague and uncertain. It is true that BTC has become very firmly embedded in the existing financial system in recent years, but it is still a new technology and concept for most people in the world. At this time, Bitcoin is a high-risk and high-yield investment tool, but not a currency or an analogue of a currency. You don't buy it to store money in it and make payments.

Technically, nothing changes. The bitcoin quotes are currently near the level of $60,000, but fully overcoming this level is still unlikely. All three levels of support (the red lines in the illustration) have not been overcome, so from a purely technical point of view, an upward movement is now highly possible. Now, if the market participants manage to overcome $61,700, then the next target will be the resistance level of $65,408.