empty
31.05.2023 04:08 AM
Is Bitcoin preparing to revive its uptrend?

This image is no longer relevant

The daily chart shows that Bitcoin intends to revive its uptrend. However, it is still too early to draw such a definitive conclusion. The cryptocurrency is still below the critical line and inside the Ichimoku cloud, but its recent growth could indicate a transition to a bullish phase. Currently, it is better to assess Bitcoin's prospects on the 4-hour chart, where a descending channel remains intact. On the daily chart, there's an equal probability of moving in either direction. We believe that a downward correction could still resume.

In most cases, you should pay attention to the fundamental background. However, there have been very few important news events recently. Essentially, the most significant data currently revolves around the Federal Reserve's interest rates and the issue of the US debt ceiling. Everything is clear regarding the Fed's interest rates. If inflation does not start to rise sharply or stop decreasing, the central bank simply has no reason to continue rate hikes. It doesn't make sense. Currently, the market expects at most one more monetary tightening. And it is unlikely that Bitcoin has started to rise again based on this factor.

However, resolving the issue of the US government debt (which is not fully resolved yet) could potentially trigger a new rise for Bitcoin. It is quite difficult to explain how Bitcoin is connected to government debt, but the fact that the cryptocurrency started to rise around the same time that US President Joe Biden announced a breakthrough agreement with Republicans indicates a correlation. If this is indeed the case, then this news has already been priced in. There is a 99% probability that there will be no default in the US. We just have to wait for the vote in Congress.

This image is no longer relevant

We still don't see compelling reasons for Bitcoin to appreciate right now. The overall fundamental background remains favorable for it, but the market has already factored in all possible bullish factors. It is worth noting that the Fed has not even begun to hint at possible monetary policy easing, and the rate cuts are scheduled for next year. We don't expect Bitcoin to show significant growth anytime soon, but it is important to closely monitor the descending channel on the 4-hour chart.

On the 24-hour chart, Bitcoin has made several attempts to surpass the $29,750 level but has been unsuccessful. As a result, the cryptocurrency has started a downward correction. In the near future, we expect Bitcoin to fall towards the $25,211 level, which is not far away. The succeeding movement will depend on whether it manages to breach this level or not. You can consider buying when a corresponding signal forms, such as a bounce from $25,211 or a trend line. The 4-hour chart and the channel also hold significant importance.

Paolo Greco,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Technical Analysis of Daily Price Movement of Ethereum Cryptocurrency, Friday May 16, 2025.

If we look at the 4-hour chart, the Ethereum cryptocurrency appears to be moving above the WMA (21) which is a dynamic support where the WMA has a slope that

Arief Makmur 06:09 2025-05-16 UTC+2

Technical Analysis of Intraday Price Movement of Uniswap Cryptocurrency, Friday May 16, 2025.

On the 4-hour chart, the Uniswap cryptocurrency appears to have a Descending Broadening Wedge pattern, so even though the Uniswap price movement is moving below the WMA (21) which

Arief Makmur 06:09 2025-05-16 UTC+2

Bitcoin spikes from $96 600 to $104 500 in 24 hours

Bitcoin has surged to $104,500, after trading at $96,600 just yesterday morning. This confident move above the $100,000 mark clearly signals a return of strong bullish momentum in the cryptocurrency

Jakub Novak 14:49 2025-05-09 UTC+2

Trading Recommendations for the Cryptocurrency Market on May 9

Bitcoin has climbed above $100,000, while Ethereum is trying to consolidate above $2,000. After yesterday's sharp rally, which continued during today's Asian session, Bitcoin is now trading at $103,000, having

Miroslaw Bawulski 09:46 2025-05-09 UTC+2

Technical Analysis of Intraday Price Movement Ethereum Cryptocurrency, Friday May 09, 2025.

If we look at the 4-hour chart of the Ethereum cryptocurrency, it appears that the price movement is moving above the WMA (30 Shift 2) which also has a slope

Arief Makmur 06:27 2025-05-09 UTC+2

Technical Analysis of Intraday Price Movement Bitcoin Cryptocurrency, Friday May 09, 2025.

On the 4-hour chart of the Bitcoin cryptocurrency, the Stochastic Oscillator indicator can be seen to be in Overbought conditions and is now preparing to Cross SELL and break below

Arief Makmur 06:27 2025-05-09 UTC+2

Bitcoin: Who's Driving the Price Up — Powell, the U.S. Treasury, or Short Squeezes?

While stock indices remain stagnant, gold consolidates near its highs, and Bitcoin is once again capturing attention. The crypto market's flagship has approached the psychologically important $100,000 level

Ekaterina Kiseleva 00:28 2025-05-09 UTC+2

Trading Recommendations for the Cryptocurrency Market on May 8

Bitcoin reached just below $100,000, while Ethereum hit $1,900. Such a major growth in the cryptocurrency market once again confirms its bullish outlook, which has been discussed quite

Miroslaw Bawulski 09:22 2025-05-08 UTC+2

Bitcoin on the Brink: Breakout or Reversal?

Bitcoin's price is hovering near a psychologically significant threshold, with market participants bracing for another upward surge or a sudden reversal that could erase short-term bullish expectations. More chart

Ekaterina Kiseleva 01:16 2025-05-08 UTC+2

Crypto market opens with buoyant growth

US stock index futures surged sharply at the opening of today's trading session on news that representatives from the US and China have resumed consultations on trade matters. Media reports

Jurij Tolin 14:14 2025-05-07 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.