Bitcoin quotes recovered slightly after falling on Sunday, and all the movements on Monday and Tuesday were pretty calm. These days, bitcoin could resume growth or continue to fall with equal probability. Now, the hour of rethinking has come in the cryptocurrency market. All private and large investors need to clearly decide what to do next. At the same time, the strategy of actions for the first and for the second is absolutely different. If small investors can't keep bitcoins in their account for years, large and institutional investors can. If small investors start to dump bitcoin, feeling its collapse, the main question will be whether the institutions will be able to buy all the coins to prevent a further drop in bitcoin. In any case, we believe that the pullback down to $15,000 in the moment will not end. It can be seen perfectly in the illustration below that the upward trend is weakening. Each subsequent peak is located at a smaller distance from the previous one than the previous one. Now, bitcoin is kept afloat, because it rested on the support level of $50,770, which is the previous local minimum. Thus, in the near future, we expect a new drop in quotes to this mark.
The fundamental background for bitcoin in recent days is also quite unpleasant. In China, there was a failure in the supply of electricity in one of the largest regions in the world for mining. The Ministry of Finance is rumored to be preparing large fines for several financial institutions for laundering money through bitcoin. And the top management of the recently released NASDAQ crypto exchange Coinbase sold off almost all of its shares unexpectedly for many. In addition, it became known that the regulatory institutions of South Korea intend to join forces in the fight against illegal transactions in the network of bitcoin and other cryptocurrencies. South Korean authorities have issued official instructions to all local financial institutions to strengthen control over all financial transactions and report any suspicious transactions.
It is important to remember that for the constant growth of Bitcoin quotes, a constant new influx of investment in this network is required. If the investment ends, bitcoin will not grow. During the last upward trend, many institutional investors turned their attention to BTC, but according to many experts, everyone who wanted to buy bitcoin has already done so. In general, the conclusion is the same: if tomorrow Tesla does not make a statement that it wants to buy bitcoins for another $1.5 billion, or something like that, it will be extremely difficult for the cryptocurrency to continue growing.
In technical terms, bitcoin is fixed below the critical line, as well as below the ascending channel. Thus, according to all the canons of technical analysis and the Ichimoku indicator, a downward correction should now follow. However, we should also pay attention to one important fact: BTC quotes fell exactly to the previous local low near the level of $ 50,770. And they bounced off him. Thus, further downward movement is impossible without overcoming this level. Below, traders are waiting for only support of $43,850, but some analysts also give the support level of $37,500 as a target for a possible fall in Bitcoin. We also allocate another local minimum – $30,500.
