FX.co ★ Michael Saylor sees Bitcoin as solution for Turkey

Bitcoin has been trading within a downward channel for two months now. We have a clear downtrend, with no sign of it coming to an end anytime soon. The price is moving in the middle of this downward channel, making no attempts to move above it. This suggests that there are fewer new investors entering the market or, at least, fewer new sellers. This is not a surprise given the recent events that have made investors question the wisdom of investing at this time.

It has yet to be determined what will come of the lawsuits against Binance and Coinbase. Perhaps, these companies will face hefty fines or even be banned from operating in the United States. For instance, 80% of Coinbase's revenue last year came from the US. The US market is large and wealthy, making it a target for businesses worldwide. If Coinbase is denied access to this market, it is highly likely the company will go bankrupt or face significant financial difficulties. This could force investors to leave the market, resulting in a large sell-off.

While the fates of Binance and Coinbase are being decided in the US, some crypto-enthusiasts are still trying to lure everyone into Bitcoin. For instance, former Microstrategy CEO Michael Saylor found a new use case for Bitcoin. According to him, Bitcoin could save the Turkish people from the rapid devaluation of their national currency, the Turkish lira. Official inflation in Turkey reached 40% in May, but some data suggest it is even higher, exceeding 100%. However, there have always been plenty of countries with skyrocketing inflation. The residents of these countries are obliged to buy Bitcoin to protect themselves from devaluation. This rescue plan seems overly simplistic and dangerous. Considering Bitcoin's capability to lose 75% of its value within a year, it is hardly stable. The Turkish Central Bank backs the lira and can influence its situation, but no one supports Bitcoin.

On the 4-hour time frame, the flagship cryptocurrency is trading within a downward channel. You may sell Bitcoin on a rebound from $29,750, targeting $25,211. Currently, we can also add a target of $24,350. It is better to refrain from new long positions until there are strong buy signals on the 24-hour time frame or a move above the downward channel on the 4-hour time frame. Neither of these scenarios has come true. Thus, it is better to keep your short positions open with the mentioned targets.