Fundamental factors indicate that a new growth cycle is approaching
The cryptocurrency market continues its systematic recovery. During the past week, bitcoin managed to successfully gain a foothold above $42,000, which marked the final exit from the sideways trend, and at the moment the BTC/USD exchange rate is testing the resistance level around $48,000. Altcoins are also not far behind, which also break through key resistance zones. Fundamentally, there are also positive factors that indicate the approach of a new growth cycle. Our traditional weekly BTC/USD analysis will show what the upcoming week will be like.
The Wall Street Journal draws attention to the fact that retail investors are again interested in cryptocurrency. The news that Amazon is looking for a leader in products in the field of cryptocurrencies has become a catalyst for a new surge of bullish sentiment among individuals and not only.
According to the observations of Cryptomoon, each bull market in BTC is usually characterized by three waves of hodling. In the third wave, short-term hodlers begin to dominate. At the moment, most likely, only the first wave has ended, and two more are waiting for us ahead.
At the moment, the BTC/USD exchange rate is preparing for a breakdown of the $48,000 level, which repeatedly kept the price from falling until May 19. The first attempts to overcome the level were unsuccessful, but there are no volume sales, only short-term corrections. This suggests that sellers are not ready to oppose anything to buyers who continue to increase their positions at the time of even the weakest corrections, according to the technical analysis of BTC/USD.
After the breakdown of $48,000, the last important resistance remains the level of $54,000, which also for a long time beat the price to the area of $60,000 - $65,000. As soon as the $54,000 level gives up its authority as a resistance, the price can quite impulsively rush to update the historical maximum.
Our forecast for the BTC/USD exchange rate for today, tomorrow and the week from August 16 to 22 — there is a high probability of a breakdown of the $48,000 level and an increase to $54,000. If it is not possible to break through $48,000, the BTC/USD exchange rate may return to the $42,000 area in the short term and impulsively, but after that, a retest of $48,000 will also follow.