On Tuesday, Bitcoin returned to $45,000, which is the maximum value of the cryptocurrency last month. A decline followed that afternoon, but Bitcoin failed to grow to the nearest target level. This moment allows us to expect the renewal of the value of the world's first cryptocurrency. It was already mentioned earlier that the current wave pattern looks quite complete. A downward trend section was built, consisting of three waves, which are almost the same in size (the first and third). Therefore, either the fifth downward wave is now formed, but the entire area will be recognized as corrective, or the formation of a new upward trend section has now begun. We can further decline if there was a failed attempt to break through any important level, but there was none. Thus, the wave analysis gives about 60-70% probability of a further increase in Bitcoin's price, but the news background remains negative and may lead to a new drop in demand for the digital asset.
- Tesla recorded a $100 million loss from the asset's fall in 2021
One of the most famous companies that actively invests in Bitcoin is Elon Musk's Tesla. The billionaire has repeatedly stated his commitment to the main digital asset. It can be recalled that the company bought $1.5 billion worth of bitcoins last year, but recorded a loss from the fall of the asset's value by $100 million by the end of it. Nevertheless, the company continues to believe in the long-term perspective of the digital asset. The company also made a profit from selling bitcoin coins last year equal to $272 million. In total, Tesla now has $2 billion worth of coins on its balance sheet.
- Analysts can't predict the next move of Bitcoin
All analysts have divided into two camps a week ago when the cost of one coin was $38,000. The first camp insisted that Bitcoin would rise again sooner or later and still be around $100,000, while the second camp assumed that it would remain within the range of $30,000-38,000, and could subsequently decline below the level of $30,000. As we can see, neither the first nor the second camp can be given credit yet. Perhaps, Bitcoin will grow to $ 100,000 someday, but it is unlikely in the coming months, given the Fed's mood to raise rates and cancel all monetary programs. Bitcoin's decline to the level of $ 30,000 is also not yet observed. It is worth noting that the main condition of the cryptocurrency market is now connected with the possible tightening of monetary policy in the United States. This process may take the whole of 2022 and even most of 2023. Many analysts believe that this puts an end to the renewal of the maximum value of the previous year.
The downward trend section continues to form. An unsuccessful attempt to break through the level of $34,238, which corresponds to 50.0% on the upper Fibonacci grid, allowed the quotes to start leaving the lows reached. However, it is still too early to talk about the end of the downward section of the trend. It can take a five-wave form and continue its construction with targets near $29,117 and $26,991, which equates to 0.0% and 61.8% Fibonacci within wave e. So far, the wave marking does not imply the construction of a new downward wave. There is not a single signal for this, and the corrective set of waves a - b - c looks quite complete, so the option of building a new upward trend section from the current levels can also be considered. To sell Bitcoin, new downward signals are needed – unsuccessful attempts to break through levels located above the current rate, or a reversal of the MACD indicator. In general, any signs that the upward wave that is currently being built is already done.
