Bitcoin is firmly settled around $38,000


Over the past day, bitcoin has stood in one place in an unusual manner for itself. The quotes of the first cryptocurrency have been trading around the level of $38,000 per coin for four days, and traders cannot move the "digital gold" either up or down. Is it time to talk about "fair value"? Or are investors just waiting for news from China, for example, or from the USA? Recall that it was the latest news from China and the United States that called into question the rapid recovery of bitcoin. If the PRC really prohibits mining, and the States introduce the mandatory transfer of information about all cryptocurrency transactions over $10,000, this will really hit the bitcoin positions hard. This is not to say that this will kill the cryptocurrency, but it will be extremely difficult for it to recover to the highs of the year. After all, everything depends, as usual, on the demand of investors. The less demand, the lower the rate. Thus, most likely, investors are really just waiting now and do not want to force events. We are inclined to the point of view that the upward trend in bitcoin is over. And for the next year or two, it will consolidate.

Meanwhile, various analytical agencies report that "whales" (large investors) bought 77 thousand coins during the past week, taking advantage of the relatively low price of the digital asset. However, as we can see, this did not affect the bitcoin quotes in a favorable way. It is also reported that the average price at which investors have made purchases over the past year is $37,800. That is, at the moment, the absolute majority of investors have not received any profit. Some got a profit, and some got a loss. The main thing is different - will the demand for "digital gold" recover? From our point of view, if the fundamental background will remain as it is now, it is unlikely. The news that has come in lately is really hitting the prospects for bitcoin. Do not forget that Tesla and its CEO Elon Musk very quickly changed their opinion about bitcoin. A couple of months ago, there were messages about Tesla buying bitcoins and the introduction of the ability to pay for electric cars with bitcoin, while the latest news suggests the opposite. And it is absolutely impossible to predict what other surprises Elon Musk is preparing for the cryptocurrency market. After all, markets are more likely to respond to Elon's posts on Twitter than to messages from the Chinese authorities. Thus, in the near future, it is probably really necessary to wait for the development of events.


Technically, bitcoin dropped twice as close as possible to the level of $30,500 and has moved away from this level not too far. At this time, trading is about $38,000 per coin. Thus, now we still count on the rise of bitcoin quotes to the critical line and for a certain period of consolidation. Nevertheless, if the bitcoin quotes manage to gain a foothold below the $30,500 level, the token's depreciation may continue.

The material has been provided by InstaForex Company -