Bitcoin prices slightly traded upward over the weekend, but today, it has already collapsed leveling all of Sunday's progress with this movement. Thus, at the moment, Bitcoin is in a downward movement and is trading around the level of $34,000 per coin which is very close to the significant level of $30,500.
After almost two weeks since the last collapse of bitcoin quotes, we can already confidently state that bitcoin has not managed to recover sharply. This means that the current prices, which many crypto analysts find very attractive, are not the same for investors, retail and large. At this time, the market does not believe that Bitcoin will resume growth right from its current positions. Moreover, an appropriate fundamental background is also needed. And it remains so now that it is more likely to see a fall to $10,000 than an increase to $50,000.
Recall that the main drivers of bitcoin sales are and have been in China recently. First, there were power outages in some regions, where many mining farms were concentrated, then several regulatory authorities of the People's Republic of China decided to ban financial organizations from providing any services related to cryptocurrencies, and finally, there was information that the country's authorities could completely ban mining. Naturally, such a news background does not contribute to the strengthening of bitcoin. There is also news from the U.S. requiring the transfer of information in any bitcoin transactions worth $10,000 to the Internal Revenue Service. With this, Bitcoin may lose one of its most attractive features – anonymity. In addition, Elon Musk regularly comments on the cryptocurrency, causing an increase in volatility in the markets.
In general, we believe that at current prices, bitcoin is no longer particularly attractive for investors. Now the market will wait for bitcoin to sink even lower, so they can buy it at the lowest prices. And it may sink further to $10,000 per coin. Recall that after the strong trends of 2013 and 2017, the quotes inevitably fell by 80-90%, which will most likely be the same at present.
In technical terms, bitcoin attempted to quickly and abruptly resume its upward movement after a strong fall, but now it is already clear that there are much fewer buyers on the market than sellers, and the notorious institutions themselves are in no hurry to invest in "digital gold". Trading currently takes place around $ 34,000 per coin. And soon, BTC quotes may drop back to the level of $30,500, where the fate of bitcoin for the coming weeks or months will be decided.