BTC Remains Above $19,400

"Bitcoin has managed to stay above $19,000 during the last day. While at times it has increased to $19,500, it has found greater pressure at those levels. At the end of the workweek, Bitcoin has risen by about 1% and is currently trading at around $19,300.

The ability to stay above $19,000 and end the week above this level could support market sentiment. At the moment, the fact that the benchmark crypto is moving around the $19,500 resistance level is considered a process of consolidation after a sharp rebound. However, the prolonged inability to get above the resistance level and beyond the psychological and technical mark of $20,000 may end up triggering a wave of correction so large that could even reverse the trend of recent months.

However, fundamentally Bitcoin can still receive support. Joe Biden is determined to stimulate the economy, and it is unlikely that the situation will change so dramatically that the traditional economy will start to return to the path of natural growth. Everyone is aware of the fact that the incentives will end sooner or later and that stocks will stop growing. Big capital already clearly perceives Bitcoin as a mechanism to diversify portfolios, while many believe it has excellent potential for profitability.

The greed and fear index for Bitcoin and the largest cryptos remains in the 'extreme greed' area, however, there is a growing conviction that currently the potential of technical indicators to influence the crypto market is reduced."