- Bitcoin made a new decline of $ 3,500 thousand
Bitcoin did not move from its place for almost the entire day on Tuesday. A day earlier, its quotes dropped by $ 3,500. Therefore, it is now still difficult to say that the construction of the corrective wave b has begun. After the cryptocurrency decreased by $ 27,000, the maximum deviation of quotes from the reached lows was $ 10,000. And this growth is almost not noticeable on the chart, since it is part of another movement, down by $ 12,000 on December 4. Nevertheless, we are counting on a clearer wave b.
The markets currently do not show any desire to buy Bitcoin, no matter what forecasts analysts and investors give, among whom there are very famous personalities. For example, Cathie Wood, who believes that Bitcoin is capable of growing to $ 500,000, only needs all institutional investors to invest 5% of their funds in this cryptocurrency. However, when studying the shares of her Ark Invest fund, it becomes clear that Wood is interested in such forecasts since the share price has been declining for several weeks in a row. Others are predicting a new growth of the first cryptocurrency, but it cannot even start a corrective wave at the moment.
- The hash rate of the network has fully recovered after China imposed a ban on mining
Six months ago, Bitcoin experienced a shock when the Chinese authorities completely banned mining on their territory. According to various estimates, 60-70% of the mining capacity of the whole world was located in China. It was a serious blow to this cryptocurrency, from which it recovered very quickly. Its quotes dropped to $ 30,000 per coin, but later, with the restoration of the network hash rate, they grew and eventually updated the annual high. Now, analytical agencies have announced the complete restoration of the hash rate of the network after the events of six months ago. Only now Bitcoin is declining again, which is due to the end of the era of free money for the economy. Both the Fed, the ECB, and other central banks of the world may abandon support programs for their own economies in the coming months, so the cryptocurrency market is going through hard times right now. Investors are afraid that a more powerful decline will happen and are in a hurry to get rid of cryptocurrencies right now.
Moreover, Bitcoin does not have the dominance index at the moment that it had a year or two ago. Other cryptocurrencies are increasingly attracting the attention of investors as potentially more profitable over a long period of time. In this case, we believe that mining has fully recovered, especially at the expense of America, where most of the mining capacity is now located, will not help bitcoin to resume the increase in any way. As I said yesterday, there are still about 2 million coins left, and miners will receive less and less remuneration for bitcoin mining every year.
The upward section of the trend in its internal structure does not cause any doubts and looks complete. If this is really the case, then the formation of a descending set of waves has begun and continues. So far, we cannot conclude that even the first wave of a new downward trend has ended. Therefore, wave a can take on an even stronger and extended form. It is worth noting that Bitcoin is very dependent on the news background, as well as on the mood of the market. If the market decides to sell it, then nothing prevents the first wave from acquiring a much more extended form. Since the attempt to break through the 23.6% Fibonacci level was unsuccessful, the decline may continue with targets located around $42731 and $ 41394, which corresponds to 38.2% and 38.2% Fibonacci.
