The price of Bitcoin recently recovered to USD 56,000, and its behavior suggests that it could soon reach new all-time highs. The main cryptocurrency on the market has resumed its short-term upward trend, but there could be resistance near USD 57.5 thousand.
After having pulled back for almost two weeks, Bitcoin recently seems fully ready to reach new all-time highs. The cryptocurrency is trading at USD 56,000, so it is a clear sign of a bullish outlook.
At the time of writing this article, the price of Bitcoin is around USD 57,690, according to data from CoinGecko. The pioneering cryptocurrency has accumulated a gain of 4.1% in the last 24 hours and 18% in the last seven days.
The recent release of the US consumer price index (CPI) has raised expectations of an increase in inflation.
Although the data was not so discouraging, the monetary and fiscal policy, along with an economic rebound, continues to worry investors. The price of Bitcoin continues to strengthen as people consider it to be a store of value.
This situation could be causing a rise in the yields of Treasury bonds and driving the US dollar higher. At the same time, this puts downward pressure on risky assets like Bitcoin and stocks.
This data from this indicator is not far from what people expected, the rise in the yields of bonds may have reduced its effect.
The inflationary risk may become more acute in the medium to long term. Therefore, the most certain thing is that Bitcoin will continue to benefit.
Bitcoin Should Reach New All-Time Highs Due to Parabolic Trend
Bitcoin seems ready to resume its strong upward trend, after a correction of just over 26%. That new cycle could easily make USD 56,000 look low.
The pullback was not very healthy, after noticing the previous big rise, but it is more than enough at a time like the present. The previous undoubtedly bullish trend did not suggest that there would be many more sales.
Institutional investors are buying at a discount and holding previous positions with complete conviction. For that reason, trying to go against the tide does not seem like a very good idea.
At this point, every drop is a good buying opportunity for those with a long-term view.
Bulls again Have the Short-Term Trend in Their Hands
It is more than obvious that Bitcoin has resumed its short-term upward trend, after having reached above USD 56 thousand. There could be some resistance when the price is near USD 57.5 thousand. However, a small correction will mean nothing but a search for demand before reaching new all-time highs.
Amid this upward trend, the pioneering cryptocurrency should have no trouble exceeding the previous all-time high.
The situation seems quite clear about the future of the cryptocurrency that Satoshi Nakamoto created. There may be some slight corrections soon, given that short-term momentum has increased a lot. Also, the best idea is to have a position in favor of the upward trend.
By Alexander Salazar
