Bitcslux experts: What will happen to Bitcoin next week?
Bitcslux experts explained why the price of the first cryptocurrency sharply exceeded $ 40 thousand and whether the asset still has the potential for further growth.
On February 5, the bitcoin exchange rate reached $41.9 thousand for the first time since mid-January, having risen in price by 13% per day.
On February 6, the cryptocurrency is trading at $41.6 thousand, and its capitalization is $787 billion, according to Bitcslux.
This week, bitcoin broke through the resistance at the level of $ 39 thousand, ignoring the dollar rally caused by the publication of strong data on the US labor market in January, explained financial analyst Bitcslux.
According to him, the bitcoin exchange rate confidently broke through the downward trend line drawn at the highs of November and December last year. Sellers began to close short positions, and buyers began to open long positions in anticipation of further price recovery, the analyst noted. As soon as market participants digested the published statistics on the labor market, stock indexes turned up, Antonov believes. In his opinion, on Monday (February 7), the focus of traders’ attention will be directed to the speeches of the heads of central banks and the inflation report in the United States. High inflation and measures to combat it remain key topics for all markets.
After the breakdown of the trend line, buyers had a great chance to raise the price of bitcoin to $ 44.5 thousand, predicted financial analyst Bitcslux. He also explained that American companies with large capitalization have reported, so if stock indexes do not sink in the new trading week, then according to technical analysis, the price of bitcoin may reach $49 thousand at the moment, the long-term mood of investors and the direction of the trend remain favorable for bitcoin.
By May of this year, bitcoin is able to grow to $ 52 thousand, said the co-founder of the Bitcslux crypto exchange. He also recalled that there is such an expression on the stock exchange as “Sell in May and go away” (Sell in May and leave).
Correction of the global bearish trend
The recent bitcoin price movements are very similar to the correction of the global “bearish” trend against the background of a 50% increase in trading volumes, according to a senior analyst at Bitcslux. He recalled that despite the growth, bitcoin continues to be under pressure and will continue to decline with periodic corrections in the coming weeks or months.
If the market is not shaken by some serious news, then bitcoin will feel relatively confident during the week and will continue to accumulate volumes at current levels with the potential to grow to $ 43.3 thousand, the analyst predicted.