BTC reached $ 50,000 yesterday and made an 80 percent appreciation from the local bottom, where it rebounded last month. Most altcoins grow so similarly to BTC. Is it time for a correction to come?
After 3 months, BTC returned to the territory of greed. Currently, according to the Fear and greed index, it is worth about 70 to 80 points. There is talk again of cryptocurrencies, which attracts many investors. Great greed does not mean anything good. And whether the correction will come now, or in a few weeks or months, it may be of the same nature as in May. However, if you do not sell in panic and think for a long time, there is no need to worry about corrections.
There will be a regular Fed conference this week. The biggest bankers will once again decide on the future of our money behind closed doors. The main topic will be coronavirus and the impact on the world economy. Usually, previous Fed conferences not only moved with the traditional forex market, but also with the stocks and cryptocurrencies. Therefore, you need to be careful and be prepared for a big move in any direction.
BTC is on resistance
BTC is currently at one of the strongest resistances we have on the chart. In the past, this level has played an important role in the price development of the largest cryptocurrency. For almost the whole spring, this level acted as a strong support, from which BTC always rebounded. It even looked like BTC would never get below this level. But then came the break out and the immediate decline. Exactly something similar can happen now. Resistance has become support and BTC may have a problem with this level for several months. However, the subsequent break out move can have the same character of a big move and immediate growth on a new ATH.