Despite the seemingly disconnected price activity relative to market and economic fundamentals, Bitcoin is emerging as a distinct asset class among investors. In recent years, its incomparably high returns have further sparked intense interest in and investment in Bitcoin and cryptocurrencies. This article warns that Bitcoin prices will still be subject to the same types of market risks impacting the output of traditional financial assets, despite their seemingly attractive independent conduct relative to economic variables.
The Price Trends of BTC Price In 2021
The price of Bitcoin soared above the $0,000 level until a downside correction against the US Dollar began. BTC is now testing a substantial $38,600 funding, below which it could decrease to $36,000.
Phoenix Dubai experts states that the price of bitcoin last week saw a good upward change above the US Dollar resistance of $36,000. The BTC/USD pair also rose above the $38,000 mark.
The price pierced the resistance of $40,000 and it settled above the moving average of 100 simple (4-hours). Before the value began a downside correction, a peak was set near $41,050. Below the $39,000 and $39,500 levels, there was a split.
- Bitcoin climbed above $38,000, but it failed to remain above $40,000.
- The price is close to the $38,600 support, but it is well above the simple moving average of 100. (4-hours).
- On the 4-hour chart of the BTC/USD duo, there is a key bullish trend line forming with support near $ 38,650.
- The pair could either drop sharply to $36,000 or rise back above $40,000.
Uncertainty of Bitcoin’s Value in Future
The volatility of Bitcoin is also influenced in large part by differing expectations of the cryptocurrency’s inherent value as a value transfer and value store process. The role by which an asset can be useful with some predictability in the future is a store of value. For any good or service in the future, a store of value may be saved and traded.
Any object or term used to transmit property in the form of assets from one party to another is a value transfer process. The instability of Bitcoin at present makes it a very uncertain store of value, but it promises to pass value almost frictionless. As a consequence, we see that the value of bitcoin will swing, just like we observe with fiat currencies, depending on news events.
Is There Any Fresh Increase in Bitcoin?
If bitcoin stays above the support of the trend line, there are chances of a new rise above $ 39,500. On the upside, the initial resistance is near the $40,000 mark.
In the upcoming sessions, a proper break and close above the $40,000 resistance would probably set the pace for a sustainable upward step. Near $41,500 mark is the next big resistance on the upside.
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