During the second trading day of the week, bitcoin quotes fell another $900, and another $900 last night. Thus, the fall has been going on for the sixth day in a row now. Yesterday, quotes almost reached the level of $30,500, which we call the target. However, there are no signs of an upward reversal today, therefore the decline is likely to continue. Contrary to popular belief that institutional investors will save Bitcoin, the cryptocurrency continues to fall. It is either their efforts are not enough to restore the bullish trend, or in fact, there are not many purchases made by institutions at this time, or there are much more sales. Recall that the other day, former President Donald Trump criticized Bitcoin. And earlier, Elon Musk distinguished himself with another series of posts on Twitter. Also, there was a lot of negative news from China and the United States. Thus, traders and investors now simply have no reason to start buying “digital gold”. Moreover, it is already clear to everyone that the “bullish” trend is over, and we can only talk about a new, upward trend. Throughout its history, bitcoin has shown several strong upward trends, and each of them ended once the rate fell by 50%. That is, it is already a kind of trend indicator. After such moments, a long period of consolidation followed, corrections that could drag on for several years. Bitcoin lost up to 80-90% of its value during this period. For example, the current upward trend, when bitcoin was hitting the $65,000 mark, started at the $4,000 level over a year ago. Thus, all factors now speak in favor of the fact that Bitcoin will be in a downward direction for another year or two. It may be strong and there will be no new collapses, but the cryptocurrency still tends to decline. As for the predictions from real crypto experts, they cite the numbers from $19,000 to $24,000 as target levels that Bitcoin may dip to in the coming months. Of course, everything will also depend on the fundamental background. If in China and the States, the authorities introduce restrictions on the cryptocurrency sphere, the interest of investors in bitcoin will decrease even more. If Elon Musk continues to fill his Twitter account with negative comments about bitcoin, and Tesla sells its coins, it will only complicate things for the world’s first cryptocurrency. In principle, bitcoin fell down somehow too sharply this time.
Technically, bitcoin has resumed its downward movement and again tends to the $30,500 level. A rebound from this level can trigger a growth spurt in the first cryptocurrency. And overcoming this level can provoke a new collapse of BTC. As part of the correction after the second round of decline, the price failed to recover even to the Kijun-sen line. Thus, the corrective scenario remains a priority for traders at this time. In case of overcoming the level of $30,500, the target will be the level of $24,349.
The material has been provided by InstaForex Company – www.instaforex.com