In this 4-hour timeframe, Bitcoin exited its second lateral channel and then plummeted like a rock. Thus, traders had ample time to open short positions. The price has yet to reach the $25,211 mark by a mere $200, but we believe this level will be reached without issues. This level should be considered alongside the $24,350 level. Hence, a rebound from this zone would result in an upward trend, while surpassing it would suggest an even greater fall for the world's leading cryptocurrency, which many "experts" still predict will be worth at least $100,000.
The recent decline of "digital gold" caused quite a stir online. Many experts began listing their reasons for Bitcoin's decline, while most expect explosive growth. For instance, investor Mike Alfred believes that the CEO of Binance, Changpeng Zhao, is to blame, alleging that he influences the main cryptocurrency's price through affiliated companies to support his own BNB token. How might this look? A significant sale of Bitcoin coins for USDT, followed by a purchase of BNB. This theory is also supported by trader Peter Brandt, who believes that Binance manipulates the market for its benefit.
It's hard for us to verify these market claims, but we want to highlight some key facts. First, last week, Tesla sold several hundred million dollars worth of Bitcoin. One could also blame Musk for Bitcoin's slump. Second, the decline might be influenced by the SEC's decision to postpone Bitcoin ETF applications to the next year. Yet, Alfred's hypothesis holds some weight. It's long been known that 75% of coins are held by a small group of large investors, who effectively have free rein to manipulate the asset.
And this is what we've mentioned before: Bitcoin is no better than fiat money. Central banks control fiat currencies and are invested in stability. In contrast, private investors control Bitcoin, primarily interested in increasing their wealth. Decide for yourself which side you want to be on. We believe Bitcoin has never and will never serve the dual purpose of money and savings.
On the 4-hour timeframe, the cryptocurrency continues to fall, as anticipated. Since the price has left the two lateral channels, we expect another $500-$1,000 decline. Of course, it's too late to sell now. We need to wait for new signals. And before they emerge, there might be several more weeks of stagnation since that's how Bitcoin has moved in recent months and years. We are awaiting the $24,350 - $25,211 zone to be reached, after which we will decide our next steps.
