FX.co ★ Bitcoin correction about to end, but danger of sideways movement remains: what awaits cryptocurrency in the near future

Bitcoin managed to avoid the saddest scenario, managing to gain a foothold abroad $50,000. This was facilitated by many positive factors, including the publication of the Tesla reports and the entry of new institutions into the cryptocurrency at an acceptable price of the March minimum. Even though the bulls have received the necessary momentum to break the bearish trend, bitcoin retains the chances to continue to correct.

In the last two days, the first cryptocurrency managed to change the situation and gain a foothold in the region of $53,000-$55,000. As of 10:00 UTC on April 28, bitcoin is quoted at the level of $54,500, but the daily trading volumes continue to remain at a low level – $46.5 billion. The BTC/USD pair continues to fall in price and become more expensive within safe boundaries, which indicates the lack of the necessary momentum for further movement to the $60,000 mark. Even though yesterday's positive trend was strengthened by the investment of $100 million in bitcoin by the Japanese game developer Nexon, the cryptocurrency may again fall below $50,000.

This is due to the fact that bitcoin lacks a more powerful momentum that will push the asset's quotes beyond $55,000 and allow it to swing to the $60,000 mark. If this happens in the coming days, then we can talk about the end of the price correction. However, even if bitcoin does not manage to approach a new psychological mark before the end of the week, you should not count on the worsening of the correction. This is primarily due to the increased institutionalization of the cryptocurrency. Having collapsed to a local low of $46,000 and at the same time received a positive news impulse, institutional investors received a clear signal that they can enter the asset and count on its further growth. Despite the sale of some bitcoins to Tesla, the publication of the financial statements had a greater effect, which removed the last doubts about the fact that the first cryptocurrency brings a lot of income.

Due to the increased institutionalization of the asset, complex price barriers ($53,500-$54,000) were broken without significant problems. And given the increasing positivity around the cryptocurrency market and the local decline of bitcoin, we can expect that a new wave of investment news will increase this week. The only reason for excitement for the crypto asset may be the result of the Fed meeting on the rate. There are no prerequisites for a possible change in monetary policy, but this event exerts some pressure on the asset quotes. If an action plan to strengthen the dollar is announced, it will produce a local, but perhaps a strong blow to the positions of bitcoin.

At this stage, bitcoin holds safe boundaries, which, all other things being equal, creates the prerequisites for the beginning of a new growth cycle. Soon, the cryptocurrency will expect powerful investment impulses to start a crusade to the $60,000 mark. Given the growing interest in BTC and the strong support of the asset at the level of $54,000, we can expect the beginning of an upward movement in the next few days.