Once again, Bitcoin experienced a rebound from the $31,000 level and initiated a more substantial decline than previously observed. In our recent articles, we highlighted that the crucial factor is the $31,000 level and the sideways channel in the 4-hour timeframe. Today, the cryptocurrency has further solidified below this channel, indicating a new wave of decline that can be interpreted in various ways.
For instance, it might be another routine correction within an ascending trend, leading to an anticipated decline toward the ascending trendline. Alternatively, it could be a new correction within the broader correction that began on April 14. In this scenario, a decline toward the $24,350 level and possibly even lower is expected. Another possibility is a new downward trend that commenced on November 10, 2021. If this is the case, we should expect a decline towards $15,500 and below. In any scenario, a decline is anticipated. Forecasts made by many experts, who previously predicted limitless growth for Bitcoin, are now postponed indefinitely.
Interestingly, the decline occurred precisely when the fundamental background promised new growth for Bitcoin. Multiple companies have filed applications with the SEC to launch Bitcoin ETFs. Meanwhile, the Securities and Exchange Commission’s investigation against two crypto exchanges is ongoing. Tesla’s code contains lines related to Bitcoin, suggesting a potential return to accepting cryptocurrency as car payment soon. It is worth recalling that in 2021, Tesla briefly introduced the option to pay with Bitcoin but quickly abandoned it due to the currency’s volatility. Despite Tesla officially citing “high carbon emissions from cryptocurrency mining” as the reason for dropping the option, this explanation was met with skepticism.
Tesla has repeatedly stated its readiness to embrace Bitcoin again if mining becomes more environmentally friendly. However, it remains doubtful that mining has significantly improved its eco-friendliness in the last two years, especially considering that the company sold 75% of its coins during this period, supposedly to “replenish cash reserves” and not due to Bitcoin’s “bearish” trend.
In the 24-hour timeframe, Bitcoin has once again rebounded from the $31,000 level and started a more significant decline. As mentioned earlier, the minimal target of the decline is the ascending trendline, currently situated around the $26,500 level. Given the delayed growth, selling cryptocurrency with this target in mind is prudent. If the trendline is breached, an upward trend might be off the table for at least a year. The intermediate target is the Senkou Span B line of the Ichimoku indicator. Currently, there are no signals to buy.
The material has been provided by InstaForex Company – www.instaforex.com
Once again, Bitcoin experienced a rebound from the $31,000 level and initiated a more substantial decline than previously observed. In our recent articles, we highlighted that the crucial factor is the $31,000 level and the sideways channel in the 4-hour timeframe. Today, the cryptocurrency has further solidified below this channel, indicating a new wave of decline that can be interpreted in various ways.
For instance, it might be another routine correction within an ascending trend, leading to an anticipated decline toward the ascending trendline. Alternatively, it could be a new correction within the broader correction that began on April 14. In this scenario, a decline toward the $24,350 level and possibly even lower is expected. Another possibility is a new downward trend that commenced on November 10, 2021. If this is the case, we should expect a decline towards $15,500 and below. In any scenario, a decline is anticipated. Forecasts made by many experts, who previously predicted limitless growth for Bitcoin, are now postponed indefinitely.
Interestingly, the decline occurred precisely when the fundamental background promised new growth for Bitcoin. Multiple companies have filed applications with the SEC to launch Bitcoin ETFs. Meanwhile, the Securities and Exchange Commission’s investigation against two crypto exchanges is ongoing. Tesla’s code contains lines related to Bitcoin, suggesting a potential return to accepting cryptocurrency as car payment soon. It is worth recalling that in 2021, Tesla briefly introduced the option to pay with Bitcoin but quickly abandoned it due to the currency’s volatility. Despite Tesla officially citing “high carbon emissions from cryptocurrency mining” as the reason for dropping the option, this explanation was met with skepticism.
Tesla has repeatedly stated its readiness to embrace Bitcoin again if mining becomes more environmentally friendly. However, it remains doubtful that mining has significantly improved its eco-friendliness in the last two years, especially considering that the company sold 75% of its coins during this period, supposedly to “replenish cash reserves” and not due to Bitcoin’s “bearish” trend.
In the 24-hour timeframe, Bitcoin has once again rebounded from the $31,000 level and started a more significant decline. As mentioned earlier, the minimal target of the decline is the ascending trendline, currently situated around the $26,500 level. Given the delayed growth, selling cryptocurrency with this target in mind is prudent. If the trendline is breached, an upward trend might be off the table for at least a year. The intermediate target is the Senkou Span B line of the Ichimoku indicator. Currently, there are no signals to buy.
The material has been provided by InstaForex Company – www.instaforex.com
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