- Bitcoin continue gaining returns to 300% advance witnessed in 2020.
- It can be anticipated that the US dollar would fail and boost interest for speculative assets like digital currencies.
In a significant leap, on its 12th birthday, the value of the world’s most famous digital currency reached $34,800 on Sunday, with other markets closed during the first weekend of new year 2021.
In 2020, Bitcoin rose by more than 300% and has now gained more than 50 percent after reaching $20,000 just two weeks earlier, adding over 20 percent over the previous week. It has sunk to nearly as low as $30K in the midst of earning revenue as usual of the digital currency, but bulls have backed away to the plate on a classic dip purchase, ending in fresh highs to enter the new week in Asia.
The pessimistic outlook against the dollar persists and is backed by investor perceptions that, for a prolonged period of time, the Fed would pursue an ultra-accommodative fiscal policy.
The dollar can be prepared to struggle when there has been the good reports about coronavirus vaccination, which helps to fuel interest for speculative assets like digital currencies.
Technical report on BTC/USD
Nevertheless, from a technical point of view, the value is now below the previous support transformed into a new resistance structure and the amount is being re-tested.
On the 4-hour scale, a break to the downside below the 10 trading average and to the former lows would confirm a 50 percent mean reversion at 32,705.
This will also place a bear market trend on the carts, increasing the possibility of a downward progression in what would lead to a stabilization of this parabolic surge on the everyday graphs.