Bitcoin still below the 200-day average – is the rally over yet?
Bitcoin, the most important and at the same time most important currency in terms of market size, fell slightly in value by 1.15 percent on Thursday and thus immediately after the publication of the Fed minutes. In the afternoon, the key currency is quoted at around 44,583 dollars and thus just below the 200-day line, which can be particularly important for long-term investors.
Overall, the latest concerns about a possible turnaround in interest rates in the USA are currently acting as a negative factor. Some of the US central bankers gave their first indications at the FOMC meeting on Wednesday evening with regard to reining in the interest rate bands this year. Against this background, the world reserve currency, the US dollar, was able to gain ground again, which can tend to make cryptocurrencies less attractive.
Do you already know the top 10 cryptocurrencies to trade in 2021?
Bitcoin course: no news is good news
From a fundamental point of view, no news is currently good news. The statements made by Elon Musk a few weeks ago with regard to Bitcoin and Co are still traded as the necessary price driver. Musk had promised that Tesla would “very likely” accept Bitcoin payments again. At the same time, he gave an insight into his personal crypto portfolio, which includes Bitcoin and Ether, among other things.
The rumors about the entry of the online series Amazon, which have already been denied, have literally caught pessimistic investors on the wrong foot. These had caused a classic short squeeze on the market and literally reshuffled the cards. The concerns about stricter regulation in the Middle Kingdom, which were still forced in May, are still out of sight and therefore out of the mind of stockbrokers.
Bitcoin course: These are the points that matter now
Against the background that the fundamental development is currently less important, the technical chart perspective could now play an increasingly important role. For the Bitcoin course, a timely recapture of the 200-day line remains elementary in order to be able to build on the most recent climbing party. This development can also pull currencies from the second and third rows upwards.
At the same time, it remains important to observe to what extent the signs of an imminent interest rate turnaround in the USA are now mounting. An end to the flood of “cheap money” could tend to come at the expense of crypto currencies, especially since these are seen in many places as a supposed hedge and diversification instrument.
In the short term, there could be no sideways market between $ 44,000 and $ 48,000. In my opinion, there are currently greater opportunities on the upper side, up to $ 50,000 per unit.
How to trade cryptocurrencies with IG yourself
Do you want to trade cryptocurrencies yourself? Open a live or demo account with IG and buy (long) or sell (short) Bitcoin using derivatives such as CFDs in a few simple steps:
- Create an IG trading account or log into your existing account.
- Enter “Bitcoin” in the search bar and select it.
- Choose your position size.
- Click Buy or Sell Order Ticket.
- Confirm the order.