Bitcoin: Up and Up It Goes, Where It Stops Nobody Knows

Coinbase IP Sparks Fresh Highs For Bitcoin

by Bogdan Giulvezan

It seems like every new week, the crypto market is making a new All-Time High, with Bitcoin leading the charge and defying gravity at $61,500. It is currently correcting lower after reaching highs just shy of $65K and some of the downside seems to be triggered by Turkey’s Central Bank.

Recently the Central Bank of Turkey published legislation that bans the use of cryptocurrencies for payments. The bank’s reasoning is that digital assets were “neither subject to any regulation and supervision mechanisms nor a central regulatory authority” and they pose several other security risks. The bank further stated that “their use in payments may cause non-recoverable losses for the parties to the transactions” and “may undermine the confidence in methods and instruments used currently in payments”. Good thing the Turkish Central Bank is watching out for our well-being…

The rest of the top coins are doing pretty well themselves: Ethereum is trading at $2,430 after recently printing an ATH at $2,548.

Ripple’s XRP continues its ascent in the SEC trial aftermath and is now trading at $1.68, coming off highs at $1.96; it’s down 3.83% in the last 24 hours but up 62.62% in the last 7 days.

Binance’s digital coin (BNB) is comfortably sitting in the number 3 spot according to CoinMarketCap rankings, with a market cap of over 83 billion USD and a whopping price of $538, coming off highs above $640. Despite the correction, it is still up almost 30% over the last 7 days.

Even the meme coin – DOGE – is up and I do mean UP: +296% over the last 7 days (86% for the last 24 hours), currently trading at an unprecedented $0.24. Just remember that what goes up must come down, and a market correction is looming.

Chart Analysis – BTC/USD

Bitcoin is now trading around $61,500 but due to its well-known volatility, it may be up or down 1K by the time you read this. The small correction seen on the daily chart below is attributed by some to the recent ban on cryptocurrencies imposed by the Turkish Central Bank. However, it can be simply a technical move, generated by the overextension of price and the inherent bearish pressure.

The pair is moving inside an ascending triangle, with a bullish bias but it is prone to further corrections in the short term. The first support will be offered by the zone between $60,000 and $58,000, as well as the bullish trend line.

As long as price stays above the mentioned trend line, the bulls are in control and a break of the upper line of the triangle can be considered a signal to buy, especially if it comes after a deeper pullback. As always, you should use a confluence of factors (2 or more) before deciding between buying, selling, or staying away.