Bitcoin's daily candle closed bearish on Thursday. Today, the main cryptocurrency resumes its downward movement but remains in a narrow sideways position between two levels: 38,610.88 (red dotted line) and 41,980.24.
The current news background is full of headlines about the next Binance restrictions and the dangers of tightening cryptocurrency regulation after Senator Warren's speeches this week.
These factors can be considered as catalysts for the decline. But what matters most are not these events but the fact that they overlapped with the technical picture, in which bitcoin reached the upper limit of the sideways 28,392.99 - 41,980.24.
The upper limit of this corridor has not been reached during the growth. But if we look closely at testing this level in the past, we will see that there is rather a zone of 40,977.38 - 41,980.24. And there was a reversal from this zone on Thursday.
In general, the previous forecast for BTC/USD has not changed. And so far, a reversal in the specified corridor down looks the most likely. Although, perhaps, this is only a small pullback caused by the closure of part of the longs before the new testing of 41,980.24 for strength. But there is no catalyst for this yet.
Meanwhile, the data provided by the analytics provider IntoTheBlock shows a sharp increase in daily large bitcoin transfers. We are talking about crypto-whales who buy bitcoin in the process of the current small rollback. (using BTC in the amount of more than $10,000).
According to the data presented, a huge number of bitcoins were transferred this week, daily volumes grew while the main cryptocurrency was approaching the level of $40,000.
During this time, the number of daily transfers reached 260,000 bitcoins for the first time since May 19, which is equivalent to $10,086,154,000.
Analysts call the fact that the whales accumulating the flagship cryptocurrency on the fall are probably moving it to cold storage based on Glassnode data on a sharp increase in over-the-counter transactions.
The news about Binance probably also contributed. Today, the largest cryptocurrency trading platform announced that it will stop providing trading services related to cryptocurrency futures contracts and other cryptocurrency derivatives in Europe. First of all, this action will affect three countries: Germany, the Netherlands, and Italy.
Against this background, two possible scenarios for the development of events for BTC/USD look like this: either an attempt to reach the level of 41,980.24 once again and test it for strength or a breakdown of the border of 38,610.88 (red dotted line) and a further decline in the wide sideways.
