- Analysts hope that the upward trend will continue and believe in a rebound from the level of $ 40,000.
Yesterday, Bitcoin increased by literally $ 100. But in general, the sluggish decline has continued over the past few weeks. The Fed meeting and its results did not have much impact on the cryptocurrency market, although we believe that they negatively affected it. After all, the main digital asset generally fell after summing up the FOMC results. Moreover, it is strange to see how many respected analysts believe that the current upward trend still remains and believe that long-term institutions and other institutions will buy all Bitcoin around $ 40,000, so we will not see a decline below. From my point of view, a long period of unfavorable news background for all cryptocurrencies has now begun. The Fed did not just curtail the QE program, it also announced its desire to raise rates. And over time, unloading of the Fed's balance sheet will begin, on which securities have accumulated in the amount of almost $ 9 trillion. This means that the Fed will act exactly the opposite in the next few years than in the last one and a half to two years when Bitcoin showed almost tenfold growth. We believe that this is a strong reason why the quotes of the first world's cryptocurrency declined. However, many analysts believe that it cannot fall too low. Nevertheless, everything is possible in the market. Two years ago, almost everyone did not expect the oil price to drop to zero.
- China banned and repressed miners, but not all of them.
According to CNBC, Chinese miners continue to provide about 20% of the total hash rate of the Bitcoin network, who are probably working illegally. It is reported that in most cases, we are talking about small farms that did not have enough funds to leave China or it was economically impractical. It is also reported that the relevant Chinese government authorities are identifying companies throughout the country that illegally use electricity for mining various cryptocurrencies. Therefore, Beijing not only introduced a ban on the production and circulation of bitcoin and other cryptocurrencies but also continues to fight against violators of this law. This development of events may lead to a slight decrease in demand for the main cryptocurrency, which is already going through hard times. It is worth noting that its rate has already plunged by $ 27,000 and cannot even build a corrective wave b.
The upward section of the trend by its internal structure does not cause any doubts and seems complete. If this is really the case, then the formation of a descending set of waves has begun and continues at this time. So far, it cannot be concluded that even the first wave of a new downward trend has ended. Thus, 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 this cryptocurrency, then nothing prevents the first wave from acquiring a much more extended form. Since the attempt to break through the 23.6% Fibonacci level failed, the decline may continue with targets located around $ 42,731 and $ 41,394, which corresponds to 38.2% and 38.2% Fibonacci. There is also an option with an increase within wave b to $ 55,295, from which a decline is expected.
