The quotes of bitcoin fell to the level of $31,100 this weekend, and this decline to this level was already the fifth time in the last month and a half. Bitcoin bounced off this level every time, so sellers are trying really hard right now. At the same time, buyers can't do anything with the cryptocurrency at all. In the last couple of weeks, the quotes have been trading more near the lower border of the side channel of $31,100 - $40,700, although they used to gravitate towards the upper one. Thus, we can assume that the overcoming of the level of $31,100 will still take place. This is exactly the scenario that we adhere to. We believe that the upward trend in bitcoin has been completed and now a long period of consolidation has begun, which may take at least a year or two. During this time, the first cryptocurrency in the world can lose up to 80-90% of its value, which no longer looks like an impossible task, since bitcoin has already fallen in price by 50% from its recent highs. We also recall that bitcoin ended its "bullish" trend in this way. Therefore, in the future, we may see bitcoin again at 6-10 thousand dollars per coin. Such a forecast seems incredible, but recall that just a year ago, the figure of $65,000 per coin also looked incredible.
The fundamental background, unfortunately, remains very negative. By and large, it has simply not changed recently, so there are no more reasons for investors to be optimistic. China continues its crackdown on miners. And given the fact that most of the world's mining capacities were located in China, this is a serious blow to both miners and bitcoin. Experts note that a huge amount of supported mining equipment has recently entered the market, which indicates, firstly, that not all Chinese miners are going to transfer their activities to other countries, some will simply stop mining cryptocurrency, and secondly, with the fall of the bitcoin exchange rate, there are trite fewer miners. All this again does not play in favor of bitcoin. So far, everything looks as if the surprising thing has passed and now the world is slowly returning to its usual, habitual state. Video cards are getting cheaper, mining equipment manufacturers are temporarily suspending sales, the demand for bitcoin and all related services, and goods is decreasing. The demand for other cryptocurrencies is also decreasing, so we continue to believe that in the near future, "digital gold" will simply not even have any reasons and grounds for a new upward spiral.
In technical terms, bitcoin fell to the support level of $31,100 for the fifth time and bounced off it for the fifth time. Formally, the price has turned up again and may continue a new round of movement to the upper border of the side channel – $40,700. However, bitcoin has been aiming to overcome the level of $31,100 for several weeks now. And the consolidation of quotes under the level of $31,100 may signal the readiness of the cryptocurrency for a new fall. Recall that many crypto experts speak in favor of the fact that the main cryptocurrency will continue to become cheaper and may fall to $19,000 - $24,000 per coin. And some even predict the figure of $10,000.