empty
InstaForex Loprais Team - Official participant of the Dakar rally
InstaForex Loprais Team - Official participant of the Dakar rally
This section is designed for those who are just starting their trading journey. InstaForex educational and analytical materials will meet your training needs. Our experts' recommendations will make your first steps to trading success simple and clear.
Start as Beginner
How to start trading
Useful information
Training and recordings
InstaForex innovative services are an essential element of productive investment. We strive to provide our clients with advanced technical capabilities and make their trading routine comfortable as we are recognized as the best broker in this regard.
Become Investor
PAMM System
ForexCopy System
Passive investments
Partnership with InstaForex is beneficial and top-tier. Join our affiliate programs and enjoy bonuses, partner rewards, and the possibility to travel with the team of the world-renowned brand.
Become Partner
Main Page
Partner Area
Advantages for Affiliates
Registration
This section contains the most lucrative offers from InstaForex. Receive bonuses when topping up an account, compete with other traders, and get real prizes even when trading in a demo account.
All Promo Campaigns
Bonuses
Contests
Events
Holidays with InstaForex are not only pleasant but also useful. We offer a one-stop portal, numerous forums, and corporate blogs, where traders can exchange experiences and become successfully integrated into the Forex community.
Full details
Forums
We are in social networks
Forex humour
Forex Portal
InstaForex is an international brand created in 2007. The company provides services for online FX trading and is recognized as one of the world's leading brokers. We have won the trust of more than 7,000,000 retail traders, who have already appreciated our reliability and focus on innovations.
Learn More
History
Why Choose Us
InstaSport
Regulation
Company News
Awards
InstaForex Stars
InstaForex Offline
Headquarters
Key documents
Social Responsibility
06.02.2024 07:41 PM
Investors are again buying BTC: Will the cryptocurrency resume its growth?
Open trading account Open demo account

For the past seven days, Bitcoin quotes have been within the framework of a local consolidation movement with minimal trading volumes. In such a situation, a "triangle" has begun to form on the daily BTC/USD chart, indicating a high probability of an impulsive breakout in one direction. During this period, the volumes of BTC purchases have significantly increased, once again confirming the key influence of Grayscale on testing the $38.5k support level.

This image is no longer relevant

Despite the growing positivity in the cryptocurrency market, there is no reason to believe that the price of Bitcoin will break out of the "triangle" in an upward direction. Furthermore, the asset has not violated the global structure of the downward trend, so the probability of a downward movement still exists. An essential factor that can directly impact the future movement of Bitcoin's price will be the speeches of Federal Reserve members regarding their vision of monetary policy.

After the regulator's meeting and Fed Chairman Jerome Powell's restrained rhetoric, local pessimism prevailed in the markets, fueled by uncertainty about the start of monetary policy easing. Powell also noted that the U.S. is on an unstable financial path in the long term as the national debt is growing faster than the economy. In light of such statements, investment activity, especially in the crypto market, significantly decreased. This is why investors will be awaiting glimpses of hope in the speeches of other Fed members.

This image is no longer relevant

Investors resume buying BTC

Despite the pessimistic short-term prospects for the crypto market and Bitcoin due to maintaining the key interest rate at a high level, long-term investors are resuming the accumulation of BTC. According to Santiment data, wallets with balances of 1,000–10,000 BTC have actively bought cryptocurrency in the last two weeks. The positive news that BlackRock and Fidelity's Bitcoin exchange-traded funds entered the top 10 largest U.S. ETFs with inflows exceeding $4.8 billion also added to the optimism.

This image is no longer relevant

At the same time, analysts from The Block report that Bitcoin network transaction volumes have reached a high since September 2022, with a result of over $1.21 trillion. This indicates the high popularity of BTC even during correction movements. However, a bit of a setback comes from Genesis, a company undergoing bankruptcy proceedings, which has requested court permission to sell shares in Grayscale trusts, potentially negatively impacting Bitcoin quotes.

BTC/USD Analysis

As of writing, Bitcoin continues to consolidate near the $42.6k level. The primary target for BTC bulls remains breaking the 0.5 Fibonacci level at $43.3k. However, after several unsuccessful attempts, the asset's price has entered a consolidation phase. Relatively low trading volumes, standing at $18 billion as of February 6, hinder the successful realization of this idea. These volumes are also insufficient for Bitcoin bears to continue the downward movement towards $40.5k and below $40k.

This image is no longer relevant

In the last 24 hours, the situation around Bitcoin has not significantly changed. This means that the asset could either move towards forming the second leg of a Gartley pattern or resume a bullish rally, establishing itself above $45k. Although Bitcoin managed to break the structure of the local downward trend, settling above $42k, the upward movement has stalled. This indicates that sellers' positions above $43k remain strong, and there is a significant probability of a resumption of the downward movement.

Conclusion

There have been no significant changes in the structure of Bitcoin's price movement. The asset continues to consolidate near the $42.6k level with minimal price impulses. The main reason for BTC weakness is the ongoing flow of liquidity into the U.S. dollar index, Treasury bonds, and gold amidst geopolitical instability. In this situation, BTC investors are left to await the approaching halving, which significantly increases Bitcoin's chances of reaching a new high.

Artem Petrenko,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
All Analytics
Wave analysis
GBP/USD Analysis on May 7, 2025 The wave pattern for GBP/USD has also transformed into a bullish, impulsive structure—"thanks" to Donald Trump. The wave picture closely resembles that of EUR/USD. Until February 28, we observed
Chin Zhao
19:55 2025-05-07 +02:00
1330
Wave analysis
EUR/USD Analysis on May 7, 2025 The wave pattern on the 4-hour chart for EUR/USD has transformed into a bullish structure. I believe there's little doubt that this transformation has occurred solely
Chin Zhao
19:51 2025-05-07 +02:00
1360
Breaking Forecast Trading Plan Cryptocurrencies USD/RUB Russian Economy Video Analysis
Trading Instruments
EURUSD GBPUSD USDCHF USDCAD USDJPY AUDUSD EURGBP EURJPY NZDUSD EURNZD Silver Gold #CL #USDX COVID-19 Bitcoin
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Bitcoin on the Brink: Breakout or Reversal?

Bitcoin's price is hovering near a psychologically significant threshold, with market participants bracing for another upward surge or a sudden reversal that could erase short-term bullish expectations. More chart
Ekaterina Kiseleva 01:16 2025-05-08 UTC+2

Crypto market opens with buoyant growth

US stock index futures surged sharply at the opening of today's trading session on news that representatives from the US and China have resumed consultations on trade matters. Media reports
Jurij Tolin 14:14 2025-05-07 UTC+2

Trading Recommendations for the Cryptocurrency Market on May 7

Bitcoin and Ethereum Show Further Growth Amid Positive Crypto Legislation News Bitcoin is currently trading at $96,700, having rebounded from a low of $93,400, while Ethereum has recovered
Miroslaw Bawulski 10:32 2025-05-07 UTC+2

Bitcoin Gathers Strength: The Market Prepares for the Next Wave

Bitcoin is trading in the $93,000–$94,000 range, about 0.5% below its recent local high of $97,900, recorded on May 2. Volatility has decreased, and the market seems
Ekaterina Kiseleva 01:23 2025-05-07 UTC+2

Trading Recommendations for the Cryptocurrency Market on May 6

Bitcoin and Ethereum spent the day in a sideways channel, although signs of active selling during yesterday's American session raise certain questions about the trading instruments' further short-term upward prospects
Miroslaw Bawulski 09:11 2025-05-06 UTC+2

Bitcoin Loses Its Foothold and Balances on a Knife's Edge: The $95,000 Trap

Bitcoin is under pressure once again. On Monday, the price of the world's largest cryptocurrency dropped below $95,000, and this is more than just another correction. It's a symptom
Ekaterina Kiseleva 00:50 2025-05-06 UTC+2

Stablecoin bill in jeopardy

Bitcoin and Ethereum have declined, and the broader cryptocurrency market reacted negatively to news that the bipartisan GENIUS Act—Guiding and Enabling National Innovations for Unleashing Stablecoins—was expected to reach
Jakub Novak 15:04 2025-05-05 UTC+2

Trading Recommendations for the Cryptocurrency Market on May 2

Bitcoin and Ethereum buyers have achieved new key resistance levels, indicating strong demand. Bitcoin has reached the $97,400 level, while Ethereum has approached the $1,870 mark. Meanwhile, the buzz around
Miroslaw Bawulski 09:15 2025-05-02 UTC+2

Technical Analysis of Daily Price Movement of Chainlink Cryptocurrency, Friday May 02, 2025.

With the appearance of the Bullish 123 pattern followed by the appearance of the Bullish Ross Hook which managed to break the previous downtrend line and the Stochastic Oscillator indicator
Arief Makmur 08:01 2025-05-02 UTC+2

Bitcoin: Who's Behind the New Accumulation and Where Is the Price Heading?

Amid a steady outflow of coins from exchanges, renewed futures market activity, and a rise in short-term holders, the world's largest cryptocurrency lays the groundwork for a potential move that
Ekaterina Kiseleva 01:03 2025-05-02 UTC+2

Top analytics

Relevance up to 12:00 UTC--4
EUR/USD Analysis on May 7, 2025
19:51 2025-05-07
Wave analysis
Relevance up to 13:00 UTC--4
GBP/USD Analysis on May 7, 2025
19:55 2025-05-07
Wave analysis
Relevance up to 09:00 2025-05-12 UTC--4
The Dollar Initiates Talks
00:47 2025-05-08
Fundamental analysis
Relevance up to 05:00 UTC--4
EUR/USD: Awaiting the Geneva Meeting
00:47 2025-05-08
Fundamental analysis
Relevance up to 11:00 2025-05-12 UTC--4
Commodity Currencies Decline Ahead of FOMC Meeting: NZD/USD Overview
00:47 2025-05-08
Fundamental analysis
Can't speak right now?
Ask your question in the chat.
Widget callback
Callback widget
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.