Bitcoin continues to suffer below the level of $60,000. On one hand, all market participants expect that the cryptocurrency will continue to grow and continue to allow them to get rich unexpectedly. On the other hand, for bitcoin to continue to grow, a constant increase in demand and an influx of new investors and traders are necessary. It has already been mentioned that each subsequent round of the upward movement in the current trend is weaker than the previous one. From our point of view, this is a sign of a weakening trend, so it is expected to end soon. Also, in favor of the completion of the growth of bitcoin, the timing also speaks. BTC has been growing for more than a year, although usually such a long growth is not the hallmark of the cryptocurrency. Of course, the time frame is very arbitrary. Hardly any of the investors are guided by them when making decisions about buying cryptocurrency. But in general, not too protracted trends suggested that bitcoin is not a long-term investment tool, like, for example, stocks. Bitcoin is not bought now to sell in 10 years. It is bought (by the majority) on the HYIP in order to earn as much as possible and as quickly as possible. Perhaps, it will be present in the portfolio of every self-respecting investor in the future, but now it is not.
Recently, the interest of institutions in bitcoin has clearly decreased. At least, no new reports of large purchases of bitcoin were received, so it even seemed that everyone who wanted to have already bought bitcoin. However, at the weekend it became known that the Norwegian billionaire Oystein Stray Spetalen invested in both bitcoin and the largest cryptocurrency exchange in the country. It is noteworthy that a week before these events, Spetalen himself criticized the number one cryptocurrency, saying that it is absolutely meaningless and it consumes as much electricity as the whole of Norway. But according to online publications, the very next day after this criticism, Spetalen spoke with representatives of the MiraiEx crypto exchange and admitted that he was wrong about bitcoin. The size of the billionaire's investments in bitcoin and MiraiEx was not reported.
Meanwhile, the director of investments at Soros Fund Management stated that the global crisis has greatly contributed to the growth of the bitcoin rate over the past year. It was the crisis caused by the pandemic that forced the governments of many countries of the world to pour huge sums into their economies. Therefore, investors in the last year are very much afraid of high inflation, and assets that bring 1-3% profit per year have become uninteresting to them. According to Dawn Fitzpatrick, bitcoin would have remained a minor asset if not for the crisis. Fitzpatrick said that in the US alone, the money supply will increase by 25% in 2020, which leads to serious concerns that state currencies will depreciate. She also added that Soros Fund Management is engaged in investments in bitcoin.
In technical terms, bitcoin continues to be on the verge of overcoming the level of $52,300 and falling down by 8-9 thousand. We once again draw attention to the fact that each subsequent round of the upward movement is weaker than the previous one. This means that the upward trend is weakening. Therefore, a correction can and should be expected. So far, the Kijun-sen line is keeping the price above itself, but the fuse among buyers is clearly running out. A drop in bitcoin quotes to $43,000-44,000 is expected in the near future.
