Tips for traders, 25 May 2021
In recent days, Bitcoin hit $32,000 again after FUD in the market from the Chinese government’s ban on all cryptocurrency-related activity. On the following day, there was another announcement that China will make its own cryptocurrency and wishes that people adopt this national coin. Global mining is still dominated by China, so with the Chinese government’s commitment to be zero carbon, sooner or later Chinese Bitcoin miners will shift to renewable energy.
From a technical perspective, the current pattern shows that Bitcoin has just broken its falling wedge formed 20-23 May 2021. In the short term, there is an indication that Bitcoin could surge higher. The main question is whether Bitcoin can breach its previous structure which is quite high.
The current situation is dominated by fear. If Bitcoin can go beyond $45,000, we can see a brighter future in the next few weeks. Meanwhile, short term trading might make more sense as volatility remains high.