The world's first cryptocurrency made an impressive rise over the weekend. And to be more precise, on Sunday, bitcoin rose by $ 3,500. Once again, the course of "bitcoin" was influenced by Tesla CEO Elon Musk. The odious billionaire continues to comment on bitcoin. However, this time, his message was harmless, non-provocative, and directly impacted his company and its activities. Therefore, Musk can hardly be charged with manipulation this time since he only answered the question of when Tesla will again start selling electric cars for bitcoins. Musk said that the company would return to transactions in bitcoin when miners around the world will more often use renewable energy to mine cryptocurrency (more than 50% of the time).
After this message, new growth began. We still believe that the correction scenario remains the main one for the next year or two. We believe that now a long period of consolidation has begun, in which bitcoin is located after each of its upward trends. However, the quotes are still fixed above the descending trend line on the daily timeframe, so there are specific upward prospects for "digital gold" now. However, at the moment, the "b" has not even managed to overcome its previous local maximum, so we can even assume that the price is in a side-channel between the levels of$ 31,000 and$40,000. In any case, the situation should clear up in the coming days. We recall that if we put aside all the messages from Elon Musk, the fundamental background for bitcoin and the entire cryptocurrency market remains very weak. Because the most important news has already come from China and the United States, where the authorities want to tighten the cryptocurrency market regulation very much, and in the Middle Kingdom, they even want to ban mining completely. At the same time, in some regions of China, miners have already begun to prohibit digital mining assets. Thus, from our perspective, the markets will pay more attention to these factors and news. Therefore, bitcoin is just more likely to have a new decline after the growth on Sunday since this is the nature of the movements observed in recent weeks. Well, any new data from China and the United States can have a strong impact on the mood of crypto traders, especially if the news is negative.
In technical terms, bitcoin has not managed once again to work out the support level of $ 30,500. However, it also fails to overcome the level of $ 40,000. Thus, despite overcoming the downward trend line, there is now a high probability that bitcoin is inside the side channel with the upper limit just around the $ 40,000 level. Therefore, there is a high probability of a downward turn today or tomorrow with a new drop of 7-8 thousand dollars.
