Forex Analysis & Reviews: 31.05.2023 - Is Bitcoin preparing to...

Live Chat

InstaForex - Official partner of Dragon Racing

This section features the most important information about trading with InstaForex. We provide both analysis from leading experts for experienced traders and articles on trading conditions for beginners. Our services will help increase your profit potential.

Become Trader

Account Opening

See also

Trading Conditions

Forex Analytics

Charts

This section is designed for those who are just starting their trading journey. InstaForex educational and analytical materials will meet your training needs. Our experts' recommendations will make your first steps to trading success simple and clear.

Start as Beginner

How to start trading

Useful information

Training and recordings

InstaForex innovative services are an essential element of productive investment. We strive to provide our clients with advanced technical capabilities and make their trading routine comfortable as we are recognized as the best broker in this regard.

Become Investor

PAMM System

ForexCopy System

Passive investments

OYS account

Partnership with InstaForex is beneficial and top-tier. Join our affiliate programs and enjoy bonuses, partner rewards, and the possibility to travel with the team of the world-renowned brand.

Become Partner

Main Page

Partner Area

Advantages for Affiliates

Registration

This section contains the most lucrative offers from InstaForex. Receive bonuses when topping up an account, compete with other traders, and get real prizes even when trading in a demo account.

All Promo Campaigns

Bonuses

Contests

Events

Holidays with InstaForex are not only pleasant but also useful. We offer a one-stop portal, numerous forums, and corporate blogs, where traders can exchange experiences and become successfully integrated into the Forex community.

Full details

Forums

We are in social networks

Forex humour

Forex Portal

InstaForex is an international brand created in 2007. The company provides services for online FX trading and is recognized as one of the world's leading brokers. We have won the trust of more than 7,000,000 retail traders, who have already appreciated our reliability and focus on innovations.

Learn More

History

Why Choose Us

InstaSport

Regulation

Company News

Awards

InstaForex Stars

InstaForex Offline

Headquarters

Key documents

Social Responsibility

InstaForex Loprais Team - Official participant of the Dakar rally

31.05.2023 04:08 AM

Is Bitcoin preparing to revive its uptrend?

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.

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.

You have already liked this post today

*Disclaimer: The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.