The main cryptocurrency continues its downward trend, which has significantly weakened in the last few days. The thing is that bitcoin quotes have fallen to the level of $31,100, which is very important for traders and investors. At least, the price has already fallen to it six times in the last two months and has failed to surpass it each time. Thus, the future prospects of bitcoin for the next couple of months depend on whether traders will be able to overcome this level. In principle, only the level of $31,100 can save it from collapsing right now. We believe that the more times the price tests this level for strength, the more chances that the next attempt will be successful. Of course, we can recall the British pound, which was trading near its 3-year highs for more than a month and even updated them, but could not overcome the level of 1.4240, after which it began to decline. However, Bitcoin is not the pound. Now all participants of the cryptocurrency market should have another issue on the agenda. When is the downward trend in "digital gold" supposed to end and does it have any prospects in the future at all? Recall that in 2020, bitcoin grew solely due to the global crisis, as well as the strongest monetary incentives from many central banks of the world. There was a banal increase in money, so a certain part of it settled on the cryptocurrency market. Now, on the contrary, the whole world is returning to its usual life and the demand for bitcoin is falling. Because bitcoin remains an extremely volatile investment tool, but not a payment tool or a savings tool. Moreover, the year 2021 showed that many governments of the world are ready to oppose bitcoin and other tokens, as they pose a threat to the financial system. Therefore, it can be assumed that in the future the legislation will only be tightened. Especially when central banks start issuing their digital money. They simply will not need competitors in the form of decentralized cryptocurrencies, which can be easily and simply banned at the legislative level. Thus, we would say that a new bullish trend in bitcoin will require a new global crisis or some global fundamental event. It is quite possible that over the next few years, bitcoin will fall to the level of $10,000 and will then trade around it until it gets a new push.
Technically, on the 4-hour timeframe, bitcoin quotes have settled below the upward trend line, as well as below the Ichimoku cloud. Also, the price dropped to the level of $31,100 per coin and has been trying to overcome it for three days. If a breakthrough occurs, then only the level of $29,700 can keep it from collapsing. Overcoming it will open the way for the bears to the $24,350 level.
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