Bitcoin is testing $70K. Will FOMO return?

Bitcoin is testing K. Will FOMO return?
Bitcoin is testing $70K. Will FOMO return? Photo credit: Pixabay.

On Monday, Bitcoin stormed $70K after a long consolidation of strength. This is a solid attempt to break downside corridor resistance, encouraged by the reversal to the upside in US equities late in the day on Friday. At this point, we advise you not to join the rise but to look out for further dynamics, which promise to be very interesting. Touching this round level will probably spur trading volumes.

If Bitcoin’s growth continues in the coming days, the downtrend will break. Then, the price could quickly return to historical highs. However, unlike the March test, this will most likely be followed by a crucial FOMO switch, as it was in the second half of 2020.

Alternatively, a full-blown FOMO could be delayed for a few more months. There’s not much chance of a scenario with Bitcoin falling back to $60K again, followed by a long recovery. It is likely that cryptocurrency investors are fed up with Bitcoin for now and are not ready to push prices into the stratosphere.

News background
Bitcoin rose 13% to $67,600 at the end of May, recovering more than half of April’s decline. In terms of seasonality, June is considered quite successful for BTC. Over the past 13 years, bitcoin has ended the month up eight times (16% on average) and down five times (19.2% on average).

QCP Capital believes Bitcoin’s growth is being held back by uncertainty surrounding the potential asset allocation of the Mt.Gox exchange. In late May, the platform, which went bankrupt in 2014, began moving over $9bn worth of BTC owned by it for the first time in five years. Mt.Gox is expected to compensate customers by 31 October.

According to MN Trading founder Mikael van de Poppe, the altcoin market is in a consolidation phase ahead of a “big breakout.”

Notcoin soared 320% in a week, hitting an all-time high above $0.029 on Sunday. Listing on major exchanges in mid-May increased the coin’s availability and attracted investors’ attention.

Information supplied by: The FxPro Analyst Team