Sunday passed very calmly for bitcoin. The cryptocurrency continued to try hard to correct after falling by $27,000 and has already managed to recoup $7,000. However, it occurred on the same day as the last collapse. The cryptocurrency has been steady for the last 8 trading days. Thus, formally, the correction continues and the downtrend is cancelled as the price has consolidated below the trend line, which is clearly visible on the chart below. It has been repeatedly mentioned that many investors, entrepreneurs and businessmen, especially world-famous ones, try to artificially inflate bitcoin price. For example, on Sunday CEO of Ark Invest Cathie Wood said that bitcoin could rise to $500,000 if all institutional investors put 5% of their money into it. Previously, it had been repeatedly predicted that bitcoin would surge from $75,000 to $100,000 by the end of 2021. Evidently, they were not destined to come true, but they are still being issued in abundance.
Expert: Bitcoin is bought globally, regardless of its price.
Analyst Anjey Kovalchuk, for example, believes that at the moment bitcoin is the most popular cryptocurrency in the world, and investors buy it once a month regardless of its price. It's very similar to the slogan: get your pay cheque - buy bitcoin! Thus, the expert thinks it is advisable to keep the cryptocurrency on your balance sheet for at least a year. Kovalchuk also expects that in the last 2 weeks of the passing year bitcoin may be used again as a means of diversification against high inflation and falling prices on metals.
It is believed that bitcoin could obviously rise in the last two weeks of 2021, though it will be a corrective rise. Taking into account the Fed's monetary policy strategy, it will be hard for bitcoin to grow and constantly increase in demand. Notably, most of the coins have already been mined and distributed. That is, traders interested in bitcoin, had bought it long ago. Besides, according to common practice, bitcoin is not necessary for everyone. Therefore, from our point of view, bitcoin will continue to correct in the next few months. Notably, China banned all cryptocurrency transactions this year. Besides, it is a pretty big market. In the US new tax legislation may be introduced any day now. According to it, all transactions over $10,000 will be controlled by the IRS. This fact could also significantly reduce interest in bitcoin. Thus, a deterioration of the fundamental background and a new decline in quotations is expected.
On the 24-hour timeframe, the bitcoin quotes are fixed below the uptrend line, so the bullish trend is broken. Therefore, the fall may most likely continue after the end of the upward correction. The first targets for a new round of downward movement can be the levels of $43,852 and $40,746. Besides, bitcoin can fall to $30,000 per coin in the long term.
