At the 4-hour TF, the technical picture for bitcoin has not changed over the past two days. The cryptocurrency is trading more sideways than down, although the upward trend reversed when the price settled below the upward trend line. We still expect a powerful drop in the cryptocurrency to the level of $ 31,100, as the fundamental and geopolitical backgrounds remain very complex.
Who said that the world needs a new means of payment?
When cryptocurrencies began to slowly win the minds of traders and investors, there were a lot of questions about bitcoin. For example, what is it like in general? The most popular answer is a digital currency, the issue of which is limited, and which is beyond the control of any central bank in the world. It was the "decentralization" of bitcoin that was called one of its main advantages. However, let's ask ourselves, who needs a currency that is not regulated by anyone or anything? Who is interested in a currency that is beyond the control of central banks? Yes, on the one hand, the Central Bank can issue any amount of money, which sometimes generates high inflation. For example, the States or the European Union during the COVID pandemic. However, they issued the currency to protect their economies from falling due to the "coronavirus" crisis, and not just like that. If there were no monetary stimulus programs, who knows how much the world economy would have fallen? Thus, currency regulation is not always a bad thing. But bitcoin cannot be regulated by anything and no one, which means it can no longer be used as a global means of payment.
Next, important question number two. Who said that the world needs a new means of payment? If you want to buy coffee with a croissant in another country, you can easily pay with a bank card in any currency, and the conversion will happen automatically. Why do you need a crypto wallet for this, certain cryptocurrencies, which are also not accepted everywhere? Visa cards are accepted for payment everywhere, for example. There are excellent payment systems Visa, PayPal, and Mastercard. Why would the world abandon them to pay with Bitcoin? The fact of the matter is that bitcoin is still used as a means of payment in cases where the fact of payment itself should be hidden. That is, it is used to pay for various illegal goods and services, used for tax evasion, and used for anonymity. Like many other cryptocurrencies. This is exactly their niche. Therefore, those who need anonymity or the simplicity and speed of transatlantic transfers will use bitcoin. The rest, who do not need money transfers for thousands of kilometers or anonymity of payments, can safely pay for coffee and groceries with ordinary, fiat money.
On the 4-hour timeframe, the quotes of the "bitcoin" are fixed below the trend line and may continue to fall. Thus, we expect the movement of the cryptocurrency with the goals of $ 34,267 and $ 31,100 and recommend selling it at this time.