Bitcoin is attempting to reach a historical high

Bitcoin continues to rise on the daily timeframe. An upward trend line continues to indicate the continuation of growth, and so, only purchases should be considered at the moment. At the same time, it was repeatedly mentioned that there are no solid fundamental reasons for the growth of cryptocurrency, and the entire upward movement looks just like another "hype". Despite the fact that hype is also a trend, it is suggested to be ready for a new collapse since the current growth looks too baseless. However, in the case of cryptocurrencies, one should always be prepared for such a decline, because it is absolutely normal for them to decline in price by 5-10% per day.

Meanwhile, Bloomberg chief strategist Mike McGlone said that Bitcoin's price could rise by the end of 2021. He explains his opinion by the fact that too high public debt has formed in the States, as well as the threat of technical default, which can lower confidence in the US currency and the American economy. At the same time, trust in bitcoin is growing and people continue to invest in it. McGlone also believes that bitcoin is preparing to move to a "unique phase" in the fourth quarter of 2021. We would like to add that the main digital asset continues to be used mainly as a tool for quick earnings for many small market participants. Therefore, it can still fall if most players feel that the "bullish" trend is over.

At the same time, the founder of Starwood Capital Group Barry Sternlicht expressed disagreement with the opinion, which was recently voiced by Jamie Dimon, the head of JPMorgan. Sternlicht believes that Bitcoin is much better than gold. Central banks around the world continue to print money, while the issue of bitcoin does not exceed 21 million coins. He also believes that Bitcoin is very convenient to trade from anywhere on Earth. It can be recalled that Dimon called bitcoin "useless", but noted that the clients of his bank are also adults and smart people and have their own point of view on this matter.

Therefore, the opinions of many billionaires and businessmen regarding bitcoin are still different. Some people are waiting for its complete collapse, while others are waiting for the strongest growth. As always, the truth lies somewhere in the middle. Bitcoin has already experienced 2 or 3 collapses in its history. Therefore, it is not immune from the fourth. At the same time, its long-term prospects are really good, as its popularity is growing.

However, we would say that the news about the beginning of the curtailment of the Fed's QE program could halt investors' admiration to Bitcoin, since they now have a lot of printed money from the state. But they will become fewer and fewer until the Fed completely finished the stimulus program in the middle of next year.

The upward trend continues in the daily timeframe after it failed to break through the Ichimoku cloud. This trend line supports the bulls, so it will be possible to talk about a new strong decline in Bitcoin only after breaking this line. So far, the maximum that this cryptocurrency can count on is a correction. The level of $ 56,500 has been broken, so now it is heading for its historical high of $ 64,700.

The material has been provided by InstaForex Company - www.instaforex.com

from RobotFX