Cryptocurrency Analysis

[IFX_Selena]

Bitcoin stayed on the edge of the abyss!



By some miracle, Bitcoin was kept from fixing below the level of $43,852. However, it still held on, so the implementation of the correctional scenario is currently on pause. Recall that bitcoin has not had a strong fundamental background to continue to grow in recent months. Many consider the first cryptocurrency and the entire market to be overheated. However, it still cannot be said with certainty that the upward trend will not ultimately be resumed. At the moment, it just looks the other way around. We saw a classic three-wave corrective structure. Thus, now, when bitcoin failed to overcome the level of $43,852, and the correction looks impressive, it may just start to grow. However, this requires not only staying above the $43,852 level, but also a rebound from this level. It is not yet clear and unknown whether the buyers will be able to save bitcoin from the edge of the abyss. After all, it is possible that in recent days, bitcoin has been sold by large investors, both private and institutional. If so, they now need new reasons to start investing in bitcoin again.

Meanwhile, the crypto community lashed out at Elon Musk for his posts on Twitter regarding Bitcoin and Dogecoin. According to many market participants, Musk, with his statements and comments on cryptocurrencies, greatly affects the entire market, which often leads to losses. Moreover, many believe that Musk's posts have nothing to do with reality at all. Some experts say that Musk has absolutely no understanding of how money works. Others believe that Musk is simply provoking people online. Also, the crypto community is not happy with the fact that Musk is promoting the Dogecoin cryptocurrency, with which, according to the developers of this token, he has been associated since 2019. At the same time, Musk began to criticize Bitcoin again and publish false information about the first cryptocurrency on Twitter, causing irreparable damage to its ecosystem. True, most of the accusations against Elon Musk still sound far-fetched. Formally, Elon Musk has every right to comment on bitcoin and other altcoins. It is not his fault that the cryptocurrency market treats his statements as signals from the Fed about a change in monetary policy. On the other hand, Musk can use this factor for his personal interests and with the aim of manipulating the markets. According to some experts, Musk's statements can lead to a strong drop in bitcoin quotes, so people who own bitcoin have less money for everyday needs. Although, it is unlikely that the critic who said this is worried about ordinary people. Rather, it's about billionaires who are also losing money because of the words of the CEO of SpaceX and Tesla.



Technically, bitcoin dropped to the support level of $43,852, but failed to overcome it on the first attempt! Now is a very important time for bitcoin. In principle, the correction looks complete, so now either the downward movement will continue, but within the framework of the downward trend, or a new round of upward movement will begin within the existing upward trend. Thus, we would suggest cautious purchases from the level of $43,852. But if BTC overcomes this level, its fall will continue with the targets of $38,467 and $30,501.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021