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The Growth of the BTCUSD may be Short-lived

10/31/2022 1:37 PM

Last week, the BTC/USD pair, as part of the general market trend, attempted to grow and tested 21000.00 but has not yet been able to consolidate above this level.

Experts attribute the positive dynamics of quotations to the closing of the deal to acquire the Twitter platform by the owner of Tesla Inc., Elon Musk. It is assumed that now the microblogging service will actively integrate with the digital asset market, and DOGE, promoted by Musk more than once, will become its base cryptocurrency. In particular, with the help of this token, various companies will be able to pay for advertising and carry out other transactions on the Twitter network. Representatives of the platform have already stated that a new feature will be implemented soon, allowing users to buy and sell NFTs directly through tweets. The active Twitter Inc.'s entry into the cryptocurrency market will help expand the access of ordinary investors to digital instruments, which will act as a driver for strengthening their rates.

However, it is too early to talk about the steady growth of the cryptocurrency sector in general and BTC in particular. Many investors hope the market had already reached its "bottom" and resumed growth, repeating the dynamics of 2018, 2019, and 2020, when a sharp upward movement replaced long periods of low volatility. However, the factor of the long-term tightening of the US Federal Reserve monetary policy, which seriously strengthens the position of the dollar, remains in force and is soon likely to continue to curb the growth of cryptocurrency prices.

The trading instrument left the downward triangle and currently trades around 20625.00 (Murrey [5/8]). The key "bullish" level is 21000.00, consolidation above, which will give the prospect of continued growth to 21875.00 (Murrey [7/8]), and 22500.00 (Murrey [8/8]). The breakdown of the level 20000.00 (Murrey [4/8]), supported by the middle line of Bollinger bands, will give the prospect of developing a decline to 19375.00 (Murrey [3/8]), 18750.00 (Murrey [2/8]).

Technical indicators do not give a single signal: Bollinger bands are reversing upwards, but the MACD is stable in the positive zone, and Stochastic has reversed downwards.

Resistance levels: 21000.00, 21875.00, 22500.00. | Support levels: 20000.00, 19375.00, 18750.00.

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