Bitcoin continues its decline after gaining a foothold on the 4-hour timeframe below the ascending trend line and the level of $ 40,746. This is exactly the scenario we predicted yesterday. We believe that bitcoin is currently heading for the level of $ 31,100, which has remained unprocessed since the last time. In principle, most factors speak in favor of this. In terms of technology, we have already mentioned two important sell signals. In terms of the foundation, everything remains as before. A new factor of geopolitics has appeared, which also puts pressure on the most risky investment asset. Thus, bitcoin now has nothing to show growth due to.
An important thing should be understood here: even if all the factors speak in favor of moving in a certain direction, this does not mean that there will be no corrections, rollbacks. This is true for all timeframes and periods. That is, figuratively speaking, on a daily or weekly TF, we see a continuing global upward trend that began 10 years ago. But this does not mean that within its framework, bitcoin cannot sink, for example, up to $ 10,000 per coin. Everyone already knows that bitcoin is such an asset, the price of which can change rapidly. This can only mean that the market is very "thin". This means that the number of bitcoin coins that are traded on exchanges (and not lying dead weight on wallets) is small, and the number of active traders and investors is even smaller. Naturally, in comparison with more stable fiat currencies or the same stock indices or stocks. This balance of forces leads to the fact that bitcoin can fly from side to side, changing its course by 5-10% per day easily and naturally. Have you ever seen the collapse of the euro or the dollar by 5% per day? If this happens, it means that something very important has happened in the world that the absolute majority of players rushed to sell. And in the case of bitcoin, this is an ordinary and boring Monday.
That is why we do not believe in all the predictions that bitcoin will rise in price forever. Perhaps, over time, there will be some ways of its artificial growth. After all, the issue of bitcoin is limited, which means it will not be more after all the coins are mined. However, we can already say that most of the coins have been mined - 19 million out of a possible 21. Therefore, in the next 100 years (it is expected that the last bitcoin will be mined in 100 years), the supply of bitcoin may increase very slightly. At the same time, this does not mean that the demand for it will constantly grow. Everyone who wanted to buy bitcoin for long-term investment may have already done so. And then it will just perform the function of an "Internet currency". Along with a huge number of other cryptocurrencies.
The trend on the 4-hour timeframe has changed to a downward one. At this time, the price has fallen below the trend line, below the Ichimoku cloud, and below the $ 40,746 level. Thus, now the way is open to the level of $ 31,100, and we recommend selling cryptocurrency at this time. So far, there are no grounds to expect a recovery of the "bullish" trend. Absolutely all factors, technical, fundamental, geopolitical, speak in favor of the fact that the fall will continue.
