Cryptocurrency Analysis

[IFX_Selena]

Bitcoin will continue to fall in price!



Bitcoin continues to be close to its local highs around the $31,100 and $29,873 levels. In the coming days, the cryptocurrency may overcome these levels, since the fundamental background is now so negative that it is very difficult for bitcoin to find reasons for growth, and for investors to find reasons for new purchases. For example, many crypto experts believe that the fun in China is just beginning. Chinese miners are just starting to disconnect their equipment from the network and are going to transport it abroad. However, all these actions will take some time. This means that a huge amount of Chinese mining capacities will soon be disconnected from mining, respectively, the network hashrate may sink even more, and bitcoin may lose several thousand more dollars in value. Experts believe that by the end of June, up to 90% of miners in China will be shut down, although some say later dates. The Chinese authorities have given all mining companies and private miners 1-2 weeks to shut down equipment. In China, many cryptocurrency experts are outraged by this decision by the Chinese authorities. They note that many mining companies have worked in accordance with the law and have all the necessary documents, as well as guarantees, and now they are simply kicked out of the country. Foundry Vice President Kevin Zhang notes that most of the equipment that was used to mine cryptocurrencies in China is not adapted to work abroad, as it does not comply with Western standards. Zhang also notes that Chinese miners abroad will face a number of other problems, ranging from hosting to deposit requirements. In addition, not only miners are going to leave China, but also manufacturers of mining equipment. For example, the largest miner manufacturer Bitmain announced the suspension of the sale of equipment and announced a move from China abroad. Thus, almost all participants in the cryptocurrency segment will leave China in the near future, and those who remain will actually be banned from operations with bitcoin. Naturally, such news clearly does not add optimism to investors. Of course, when all the miners move to other countries and turn on their equipment again, the market can experience a surge of optimism, but that will be later, not now. Given such news, it is now much more reasonable to expect a new drop in bitcoin quotes.



Technically, in the 4-hour time frame, bitcoin quotes fell to the support levels of $31,100 and $29,873 and rebounded from them. This rebound can trigger an upward movement in the sideways channel $31,100 - $41,000. Thus, at this time, it is possible to expect the growth of bitcoin quotes up to the level of $41,000. However, BTC may also return to support levels and try to break them again.





Paolo Greco
Analytical expert
InstaForex Group © 2007-2021