Well then. We have repeatedly warned that the corrective scenario remains the main one for Bitcoin at this time. In principle, yesterday our assumption continued to be confirmed. Of course, this is a market, that is, at any time and from any price position, a reversal can occur in any direction. Moreover, no one knows when the next Tesla or MicroStrategy will invest a couple more billion dollars in the “cue ball”, or Elon Musk will declare that now it will be possible to pay “crammed” for flights into space. However, if you look exclusively at the technical picture, the “digital gold” still rebounded from the level of 61.8% – $ 58,000. We called this level the last frontier and, as you can see, it withstood. Now, bitcoin quotes will again tend to the Senkou Span B line ($ 52,300), then – to the previous minimum of about $ 47,000 per coin. We believe that even if the current movement is a correction, although the option that the uptrend is completed is not excluded, there should be at least one more round of the downward movement. It is logical to assume that the minimum of this turn should be below the low of the previous correction turn. Thus, we are waiting for a further drop in quotations. Moreover, the fundamental background has been weak for bitcoin lately. The entire crypto community has now turned its attention to Ethereum, which continues to break value records and is already called the “true digital currency”, which is really meant for payments and settlements. We have already said that, firstly, bitcoin is too expensive at this time, which scares off many potential investors. Secondly, everyone understands that an asset cannot grow indefinitely. Sooner or later, there will be either a serious correction or a downtrend. Therefore, the higher you buy bitcoin, the less profit you get. Third, the uptrend has clearly weakened in recent months, as we have talked about many times. Fourth, the fundamentals have not been the most favorable in recent weeks.
By the way, many experts believe that the so-called “altcoin season” has just begun. Simply put, the bitcoin dominance index continues to fall, as investors have begun to shift their funds from the first cryptocurrency, which is already growing with great difficulty, to altcoins like Ethereum or Binance Coin, which are significantly cheaper and continue to grow. Experts believe that this capital flow can be easily explained. The higher bitcoin climbs, the fewer new investors want to deal with it, and the more potential it will fall. But Ethereum or Binance Coin looks much less dangerous in this regard. Experts also note that, probably, retail investors are leaving Bitcoin at this time, and while institutions do not panic with a slight drop in prices and continue to keep coins on their balance sheet. Thus, most experts agree that large investors will continue to hold Bitcoin in their portfolios.
Technically, the cue ball bounced off the 61.8% Fibonacci level. Thus, for now, the further growth of “digital gold” is canceled, given the absence of a supporting fundamental background and a technical exit of quotations beyond the upward channel. We have already said many times that the chances of a correctional fall remain high, and the movement of recent days did not look like the market growth of the cue ball, but a desperate attempt by the bulls to keep the uptrend.