On Monday, the world's first cryptocurrency lost about $1,600, and another $1,400 during the night. Thus, at the moment, Bitcoin is trading at $33,000 per coin and is approaching the support level of $30,500. Yesterday, we continued to insist that the likelihood of a new fall in bitcoin is much higher than the likelihood of even a corrective rise. Actually, in practice, this is how it happens. Bitcoin is now fully consistent with itself during 2013 and 2017. We have repeatedly said that the upward trend is drying up, and if Bitcoin starts to fall, it will not end very soon, because after each upward trend, Bitcoin has consolidated and corrected for several years. Why is that? Because bitcoin was, is, and will always be an exclusively investment instrument. People buy it when a new wave of hype is forming. This is why the cryptocurrency grows and breaks all records of its own value. But sooner or later, everything comes to an end. Investors understand that the trend is not eternal, and bitcoin is a short-term earning tool. If you need to invest money for a long time and not be afraid of their depreciation, there are always stocks or gold or real estate. But "digital gold" can hardly be said that it will not depreciate. And naturally, all investors in the world understand this. As we already said, large institutional investors can keep Bitcoin on their balance for years and wait until it grows to $100,000 or $1 million. But small and retail investors do not want to wait 10 years for bitcoin to be consistently worth more than it is now. Therefore, at the first danger, most of the players in the cryptocurrency market begin to sell Bitcoin. In recent weeks, there has been an opinion that institutions can save bitcoin from a new fall by 80-90%, as it was before. They say that back in 2013 and 2017, there were almost no institutional traders in bitcoin, but now there are plenty. But in just a month and a half, the cryptocurrency plummeted by $35,000, and over the next few weeks it did not even manage to build a normal upward correction. Therefore, the question of whether institutionalists will or will not keep the upward trend can be considered closed. Thus, in the coming days, bitcoin may drop to the level of $30,500 and its further prospects will depend on whether sellers will be able to push through this level. Keep in mind that the fundamental background for Bitcoin remains, in principle, unchanged and at the same time very negative. Investors and miners continue to fear that mining will be completely banned in China, tax legislation will be tightened in the United States, and the Internal Revenue Service will know about all operations with bitcoin over $10,000. Therefore, the popularity of bitcoin is declining, and with it its rate.
In technical terms, bitcoin resumed its downward movement and is now again striving for the $30,500 level, which it already worked out during the previous fall. A rebound from this level can provoke a new round of growth of 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. 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