FX.co ★ Bitcoin keeps declining

For Bitcoin, the last weekend turned out to be "black" again. For several days, the cryptocurrency lingered around the important support level of $47,000, after which it continued to fall on Sunday and confidently overcame it. Thus, the corrective scenario continues its implementation. Over the past weekend, the first cryptocurrency fell by another $5,000, and on Monday it continues to trade down. Despite the fact that bitcoin has already fallen in price by $22,000, so far this movement can still be called a "correction". Corrections often take place in several waves, and now we see just such waves. Most importantly, institutional investors did not seem to be able to maintain the bullish trend. The levels that many said were very attractive for new purchases did not turn out to be so for the major market players. Or, all large investors who wanted to buy cryptocurrency have already done so, but there is no inflow of new investments. Or, big investors followed the lead of retail traders and started selling their coins when they felt the upward trend was drying up. As we said earlier, Bitcoin is not Tesla or Apple stocks, with which crypto experts love to compare it. It should be understood that behind the shares of large and world famous companies are real assets. And bitcoin is just a piece of a useless code. Thus, it has already dropped at least twice by $80-90 in value in the past, why not do it for the third time? In addition, the cheaper bitcoin is, the fewer miners will continue to mine it. Recall that the further the mining process progresses, the more difficult it is to mine blocks and the lower the reward. The total number of coins in the bitcoin network is 21 million, and more than 19 million have already been mined. Thus, the reward for each mined block decreases, the price of bitcoin is currently falling, and accordingly the profitability of this process decreases. Therefore, we believe that if bitcoin falls to $10-15 thousand, it will not be unexpected. After all, companies like MicroStrategy, which have long been associated with investing in bitcoin rather than developing analytical software, are few. Even Elon Musk's Tesla made it clear that Bitcoin games are just games, and nobody is going to play them for long. Tesla very quickly abandoned the idea of accepting payments in bitcoins and started selling its coins. No one knows how many coins Tesla has sold since that case. This will become known only after the release of reports for the second quarter.

Technically, bitcoin fell down and consolidated below the support level of $47,000, which is very important. This consolidation significantly increases the likelihood of the quotes continuing to move to the South. If today also ends in the "red'', then it will be possible to talk about overcoming the support level of $43,852. Therefore, the next target for the fall of "digital gold" will be the level of $38,467. All the lines of the Ichimoku indicator turned down, so there are no questions about the downward trend. As for the completion of the correction, this moment should be monitored on lower time frames, which we will analyze in our next articles.