Bitcoin was in correction for a short time. At the moment, we can't confirm that the correction has ended, but for now, the cryptocurrency has appreciated by $1,500. This isn't much for Bitcoin but over time its volatility also decreases, and the cryptocurrency becomes more stable. However, its volatility still allows it to double in value in just a few months. For the vast majority of stocks and currencies, this is simply impossible. Exceptions can only be some catastrophes or shock events related to a particular currency or stock. For example, a company's bankruptcy can cause the value of its shares to fall almost to zero, but during normal times such a move is simply impossible. For Bitcoin and other cryptocurrencies – it is possible.
So now we can observe a new round of upward movement, which has no specific reasons or foundations underneath. There have been no significant events or reports this week at all. It is unlikely that Bitcoin is growing due to the threat of a "technical default" in the United States, which arises every year. Let us recall that the public debt in the United States is constantly growing, as in many other countries in recent turbulent years. However, there is legislation in America that prohibits officials from borrowing absolutely any amounts. To finance public expenditures above the limit, approval of such an initiative by Congress and the Senate is required. Thus, there is no doubt that the problem will be solved, as no one in the United States needs a default. It simply requires a little time for Republicans to reach an agreement with Democrats, after which the debt ceiling will be raised. Right now there is not even a "shutdown" to panic about. Let us recall that under Donald Trump, there was a record period of shutdown for all government agencies because of the lack of money in the budget and the long negotiations within Congress to raise the debt ceiling. Therefore, if Bitcoin's growth is related to this event, it is just a formal reason to increase demand for it again.
Of course, it is possible that investors are expecting the collapse of the financial system or a new global crisis and are buying "Bitcoin" based on this, but we believe that there are many investors, and it is unlikely that all of them are waiting for an economic collapse. More likely, we are simply observing a bullish trend and an inertial movement. Bitcoin is being bought again simply because it is growing.
On the 24-hour chart, Bitcoin has already risen back to the level of $29,750. Thus, overcoming this level will allow traders to open long positions again. It was extremely difficult to react to Wednesday's growth in time, and the growth could very well end around the level of $29,750, as it is a rather strong level. A bounce from this level could result in another round of correction, going down by $2-3,00.
