Despite the fact that bitcoin keeps on decreasing, many crypto experts and investors are trying to attract bulls back. Its drop began on April 14 when the price reached an all-time high. Bitcoin has left the ascending channel, consolidating below the Kijun-sen line of the Ichimoku indicator on the 24-hour chart. Thus, the uptrend has been weakening for several months. Nevertheless, it is beneficial for institutions and all investors in general that the uptrend continues for as long as possible. It leads to an increase in the bitcoin value, making the virtual assets in their portfolios more expensive. Speculators rejoice when positive reports on BTC are published or new upbeat predictions, e.g. BTC will be worth at least $100,000, are made. These reports help bitcoin maintain the uptrend as long as possible, attracting more and more investors.
We will not be surprised if Elon Musk makes some statements in the near future, triggering a new wave of hype around bitcoin. So far, it has not happened. Market participants have to be content with the statements of the chief investment strategist at the New York Digital Investment Group, Greg Cipolaro. In his opinion, thanks to BTC's recent drop, many institutional investors managed to buy up more bitcoins. The expert said that on the platform for institutional investors NYDIG over the past two days there were mostly long positions. "Our desk has been a net purchaser over the past 24-48 hours," Greg Cipolaro said. "Institutional investors have had a buy-the-dip mentality during these risk-off events, suggesting increasing ease with handling bitcoin's volatility," wrote Cipolaro," he pinpointed. Cipolaro also said about significant BTC spot price discounts on Binance compared to Coinbase. "The difference in spot, which is usually very tight, reached nearly 3% at one point. To us, these data points are indicative of selling pressure in Asia rather than North America."
Meanwhile, the transaction fees on the Bitcoin network have risen to $60. The last time such a high value was observed was in 2017, at the peak of the last uptrend. Experts attribute this event to a strong dip in network hash rate, which, in turn, was associated with accidents at coal mines in China, which caused power outages in the entire Xinjiang region. Importantly, this is the largest bitcoin mining region in China. It accounts for about 30-35% of the coins mined.
We also predict a new drop in BTC to the support level of $ 50,770 in the near future where the future trajectory of the cryptocurrency will be determined. In case of consolidation below (which is very likely), the fall will continue to the level of $43,850.
The material has been provided by InstaForex Company - www.instaforex.com