As stated in the previous article, Bitcoin bounced again from the $31,100 mark, but this time it failed to work out the $29,700 mark. Nonetheless, the rebound has taken place, so now a new round of upward movement has begun.
However, if on the 24-hour time frame everything looks as if the cryptocurrency is in the side channel of $31,100 - $40,700, respectively, where you can count on an increase to the level of $40,700, then on the 4-hour time frame, it is clearly visible that the quotes have risen today to the Senkou Span B line of the Ichimoku indicator, as well as to their previous local maximum and at the moment they have failed to overcome these obstacles. Thus, a new fall in digital gold can be expected in the 4-hour time frame. And the quotes will not be able to bounce off the level of $ 31,100 indefinitely. In this way, a new decline in Bitcoin to this level could greatly increase the likelihood of overcoming it.
Meanwhile, JPMorgan has confirmed its forecast for the price of Bitcoin in the near future. Earlier, experts of the investment bank said that they expect a new fall in the main cryptocurrency up to the level of $24,000 per coin. But the investment director of Guggenheim Partners, Scott Minerd, believes that in the next year Bitcoin prices will fall to $10,000 or $15,000 per coin. In his opinion, investors now do not need to rush to buy Bitcoin, as over the next few years the cryptocurrency will tend to move horizontally with a downward bias. Interestingly, earlier, Guggenheim Partners predicted a rise in the rate to $400,000, and a little later - to $600,000. In addition, Minerd has already called Bitcoin a "bubble".
However, we agree with the opinion that Bitcoin may drop to $10,000 per coin in the coming year. Now, it turns out that the bears need to push through the important level of $31,100, which will open the way further down. Recall that the growth of Bitcoin quotes in the past year and a half was triggered not least by the global crisis caused by the pandemic, and by huge stimulus measures from governments and central banks. At this time, on the contrary, there is an outflow of capital from the cryptocurrency market.
Technically, on the 4-hour time frame, Bitcoin quotes bounced back from the support level of $31,100. This rebound can provoke a turn of the upward movement towards the upper border of the side channel ($31,100 - $41,000). However, to continue the upward movement, buyers need to overcome the Senkou Span B line, which lies at the level of $35,100.