Yesterday ended with a drop of almost $1,000 for digital gold. Such a decline is very small for bitcoin, but in any case, the main thing is not the movement. The main thing is that the bitcoin quotes bounced off the Kijun-sen line and the 50.0% Fibonacci level. Thus, after the cryptocurrency fell by $15,000, it corrected exactly half of this fall. Therefore, the correction condition is met and now bitcoin may resume falling. In yesterday's article, we talked about the extreme importance of the $55,859 level. At the moment, we can say that this level has not been overcome, so moving back to the area of $47,000 per coin is a very likely scenario for the coming days. We also continue to believe that the upward trend is over and in order to turn the market upside down, investors need to do the almost impossible – attract a new, large number of investments in the bitcoin network. According to many experts, everyone who wanted to buy bitcoin has already done so for a long time, and the current price levels are not at all attractive. Thus, a new influx of investors can be expected in the region of $30-40 thousand per coin, but not at current levels.
Also, the fundamental background for bitcoin remains quite negative, simply because it was a few negative news that provoked the fall of the first cryptocurrency. And nothing has changed since then. Moreover, recently it became known that Tesla sold 10% of its bitcoin reserves, calling this transaction a "liquidity test". Although in reality, this may not be the case at all. This transaction became known only because of the company's financial statements for the first quarter. Theoretically, Tesla can continue to sell bitcoin in April, May, and June, but it will become known only in July, when the reports for the second quarter will be released. And there is no positive news for bitcoin now. In Turkey, the rules of operation for cryptocurrency exchanges are being tightened in addition to the ban on paying for services and goods using cryptocurrencies. In the United States, it is unclear whether the Ministry of Finance is going to issue fines to unnamed large financial organizations for laundering money through bitcoin. The important thing is that there is no positive news. Crypto experts continue to talk about $100,000 or even $1,000,000 for a bitcoin coin. However, it is important to remember that forecasts from those who own cryptocurrency themselves should not be taken seriously, since this is merely a self-interest factor.
In technical terms, bitcoin returned to the critical line and bounced off it, so the chances of a new drop in quotes increased. At the same time, bitcoin bounced back from the 50.0% Fibonacci level, which takes place around the same place. Thus, $55,859 is now a key level for bitcoin and its prospects. Since the rebound has been made so far, the targets are the levels of $47,000 (the previous local low) and $43,852 (the support level). The consolidation of quotes above $55,859 will allow us to expect a new powerful growth of BTC.
