A few days ago, Bitcoin broke through the upward trend line in the four-hour time frame, but after that, it has already managed to noticeably grow and return back to the level of $ 50,000 per coin. However, it is not yet possible to continue the upward movement, but there is also no clear price consolidation below the Senkou Span B line. Therefore, it seems that Bitcoin is preparing to only make a small downward correction, and then resume the upward trend. From the point of view of fundamental events, there is not much to talk about now. Naturally, the cryptocurrency market is witnessing some news and events every day. However, there is not a single one among them that would be comparable in scale and significance, for example, with the statements of Elon Musk in the first half of this year or the actions of the Chinese government. This means that there is local news, but it is impossible to link them with Bitcoin's current movement.
We believe that the main cryptocurrency in the world still has more better chances for a new round of decline than continued growth. It can be recalled that when the "bullish" trend ends, Bitcoin is consolidated and corrected for at least a year. However, this does not mean that everything will follow the same scenario every time, although the likelihood of a stronger and longer correction is still high. In addition, it is still extremely difficult to find the reasons why Bitcoin has increase by $ 21,000 during the previous month. More precisely, there was no reason. China continues to repress miners and tighten all kinds of legislation that affect the cryptocurrency segment. In the United States, new legislation may soon be passed that will oblige many participants in the cryptocurrency market to pay taxes on transactions with Bitcoin. Thus, it can be concluded that the fundamental background is now more negative than positive. Based on this, the only reason why the digital asset could grow recently is the attempt of many traders and investors to play ahead of the curve and buy bitcoin before tax legislation is tightened in the US. Will Bitcoin will be able to continue rising above the $50,000 level on this factor alone?
Technically, Bitcoin continues to be in an upward trend on the four-hour timeframe, but price consolidation below the upward trend line opens up bearish prospects. Now, Bitcoin needs to make a clear consolidation below the Ichimoku cloud and the $ 47,500 level. In this case, bears will receive all the cards in their hands, and it will only depend on them whether the specified cryptocurrency continues to decline. From a technical point of view, Bitcoin in this case will have an excellent chance of falling to the support level of $ 43,852.
The material has been provided by InstaForex Company - www.instaforex.com