Bitcoin has crashed down again

analytics60ab2efa8b0ed.jpg

Bitcoin recovered after falling to $29,000 to $42,000 per coin and almost immediately fell back down again. This time, the quotes dropped to $31,137 per coin and just barely reached the support level of $30,500. Thus, the corrective scenario of the development of events, which we talked about recently, continues to work. We said that there are very few reasons for the growth of bitcoin, for its new upward trend. That is, theoretically, the cryptocurrency can start to rise in price even from the current positions and to any values. And in order to do this, you just need to start buying it again, not sell it. One post on Twitter from Elon Musk, for example, may be enough. However, in fundamental terms, there is simply nothing positive for Bitcoin right now. Moreover, the negative fundamental background, which a month ago began to put pressure on bitcoin over time, only gets worse. In the States, Joe Biden proposes to introduce strict tax control over all cryptocurrency transactions over $10,000. In China, at first, financial institutions are prohibited from providing any services in bitcoins, and according to the latest information, they may completely ban mining. And this is the country where the largest number of mining capacities in the world is concentrated! How else should bitcoin react to these events? Naturally, more and more investors are simply getting rid of it. And no institutional investors or large players in the cryptocurrency market will save bitcoin from a new collapse. Recently, it has been widely believed that large players can afford to keep bitcoin on their balance even until the second coming, which will ultimately preserve bitcoin's "bullish" trend. But, as real life has shown, the sales of small investors are quite enough to bring down Bitcoin by $36,000. Moreover, institutions are in no hurry to save bitcoin even now, when, it would seem, the price is nowhere more attractive. Bitcoin is trading again at about $35,000, which is almost half of what it was a month ago. But still no one is in a hurry to buy bitcoin. And together with bitcoin, the entire cryptocurrency market is collapsing like a house of cards. Ether has crashed in recent days to $2,000 per coin, which is more than 50% of the loss. Litecoin has dropped in price by almost three times. Thus, it seems that the "bubble" has begun to burst, but this is not a fast business and the entire cryptocurrency market may continue to depreciate in the near future.

analytics60ab2f0435288.jpg

In technical terms, bitcoin resumed its fall to the support level of $30,500 and today it can work out for the second time. We believe that if bitcoin quotes consolidate below, then it will be possible to count on the continuation of the depreciation of the first cryptocurrency in the world. The problem is that the market is currently experiencing an avalanche-like fall. That is, at the time when bitcoin consolidates below $30,500 (at the end of the trading day), it can be traded for about $25,000 per coin. Therefore, perhaps it is now necessary to closely monitor the lower timeframes, where any changes can be tracked more quickly.

The material has been provided by InstaForex Company - www.instaforex.com

Pages