Bitcoin may go above $7000 on technical correction

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The cryptocurrency market has started to recover from a protracted correction. To the lows of last week, the market capitalization rose 10% to $290 billion in the Course of the reference bitcoin adds in the last 24 hours 4% and is trading above $6,700. Altcoins fully duplicate this growth. If the current rebound will continue to develop, bitcoin could again go above $7,000.
Experts attribute the return of optimism in connection with the statements of high-ranking officials of the Commission on securities and exchange Commission (SEC) that bitcoin will not be regulated as securities.
In addition, the technical picture is now on the side of buyers: the technical indicator RSI indicates a high probability of the development of the current rebound in the near future.
At the moment the position of the financial mainstream sounds convincing crypto-enthusiasts, which negatively affects cycle time adjustments and trading volume of the market. The Bank for International Settlements we discussed the issue of the inability of the cryptocurrency to replace the traditional financial system because of the decentralization, which is considered the main issue of this direction. Another negative factor was the failure of Western Union work in the direction of the cryptocurrency that has caused bewilderment of the community that was confident that testing technology Ripple will necessarily lead to partnership, and transition to the blockchain.
Globally, the return of the exchange rate of Bitcoin to around $20k is possible only in case of fundamental things about governments. However, you need to understand that if this scenario is possible, it will happen in a very long time and will be associated rather with the increasing complexity of production, rather than a recurrence of investors ‘ interest last year. The abundance of the ICO in recent months very effectively saturates the demand of the investors for such projects, in General, interfering with the market to demonstrate the recovery of the currency rates of the top ten. Besides dreams about a rapid transition of various transactions on the blockchain yet time and again, breaking on the harsh reality.
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Alexander Kuptsikevich,
Financial analyst,
FxPro