Bitcoin quickly attracts demand after a downturn, buying pressure is growing

Once again, the weekend was marked with purchases on the cryptocurrency market. The Bitcoin settled near $8,000 last week, but Sunday evening it jumped 10% to $8,800. These are new highs since May last year. A week ago, buyers stepped up around $7,000, now closer to $7,500. Following the first cryptocurrency, as always, the altcoin market is growing: from 4.5% (XRP) to 10% (Litecoin).

Apparently, market participants are no longer afraid of moving large amounts of bitcoins. On May 22, almost 10,000 BTC ($79 million at the current exchange rate) were withdrawn from the Huobi wallet, today 1,000 BTC were withdrawn from the cold wallet of the Bittrex exchange. It seems that the crypto community has realized that these assets just change hands and return to circulation, and not liquidated.

Crypto optimists believe that Bitcoin is now only at the very beginning of a long uptrend. Bitcoin pioneer and co-founder of Gemini Tyler Winklevoss believes that Bitcoin is a digital version of gold, whose market capitalization is about $7 trillion. against $140 billion for BTC at the moment, which indicates the tremendous prospects for the first cryptocurrency. However, one should always remember about the personal interest of the twins, as they own a large number of digital assets.

In the medium term, Bitcoin, and especially investors in a digital asset, can face serious challenges. The crypto analyst Josh Rager calculated that Bitcoin collapsed about 9 times during the past rally. Therefore, the nerves of the bulls will be seriously tested, and with each new wave of correction, the most impatient will be eliminated. For others, it will be a good chance to buy an asset at local minimums.

We have repeatedly noticed that the cryptocurrency market is moving in close accordance with the technical analysis, which in turn was based on the experience of the stock market of the early 20th century. Later, the stock market changed under the influence of very large banking capital and index funds. But at the moment, cryptocurrencies are most attractive for long-term investors, which form an uptrend and for speculators which periodically rock the boat.

The FxPro Analyst Team