Bitcoin continues to move inside the $18,500 - $24,350 horizontal channel on the 4-hour TF, which has not surprised anyone for a long time. In the near future, the price may collide with the upper limit of the descending channel, after which it should either bounce off it with the long-awaited continuation of the downward movement, or overcome it with growth to the level of $24,350. However, it seems to us that everything will go according to the scenario of a 24-hour time frame, on which the price simply "did not notice" the trend line. So the same thing could happen on the 4-hour timeframe, and we remind you that such a signal would not be considered a buy signal or for growth. Overcoming one or another trend line or channel border should be clear and sharp, as well as unambiguous. If the pair has been in the horizontal channel for almost four months and has been in a total flat for almost a month, then any breakthrough cannot be considered a signal.
Meanwhile, one of the more prominent crypto traders, Ton Weiss, warned his readers against buying bitcoin anytime soon. Weiss believes that the cryptocurrency has not yet reached its "bottom" and may soon drop to the level of $10-11,000. He noted that a descending triangle is currently being formed, similar to the one that formed in 2018 and led to a more than 2-fold drop in prices. Weiss does not expect bitcoin below $10,000, but under certain circumstances, the price may drop to $7,000. It should be noted that a strong fundamental background is needed in order for bitcoin to grow within the framework of a new bullish trend, which is unlikely to form until the Federal Reserve raises the rate and sells bonds under the QT program.
At the same time, American billionaire Kevin O'Leary predicted an increase in the value of bitcoin if the US Congress passes a law regulating stablecoins. He noted that at the moment, many institutional investors are still afraid to buy cryptocurrencies and other "digital assets", but when the regulation of the industry in the United States reaches a new level, confidence in all cryptocurrencies will increase. The bill will be considered by Congress next month, then O'Leary will expect bitcoin to grow.
Bitcoin quotes continue to move sideways on the 4-hour timeframe. We believe that it will continue to fall in the medium term, but we need to wait for the price to consolidate below the area of $17,582-$18,500. If this happens, the first target for the fall will be the level of $12,426. The rebound from the level of $18,500 (or $17,582) can be used for small purchases, but be careful – we still have a downward trend.
