FX.co ★ Bitcoin remains in an ideal flat

Bitcoin has not changed in price over the past week. For several months since reaching the $31,000 level, we have been seeing sideways movement. Initially, the flat was below the $31,000 level, and now it's even lower by a couple of thousand dollars. The price simply moved from one sideways channel to another, but the flat remains. Thus, the correction scenario for Bitcoin continues. Recall that the $31,000 level is not just any level. First, it is the maximum from April 14th, which is also the maximum price value within the current "bullish" trend (if it really is one, and not just a strong correction within a "bearish" trend). Second, the price only slightly broke through it but couldn't settle above it during the last upward turn of the cryptocurrency.

Therefore, we continue to advocate for a correction scenario, which assumes a decrease in Bitcoin to the Senkou Span B line on the 24-hour TF, and then to the rising trend line. It should be noted that overcoming the trend line in a flat is often false. This moment is still far off, but it is still worth warning inexperienced traders. There is little to highlight from the fundamental background of recent weeks. The lawsuit between the SEC and crypto exchanges Coinbase and Binance continues, a new spot instrument, the Bitcoin-ETF has not been approved, and the market no longer pays any attention to the Fed and its decisions, nor American inflation.

We believe that the current position of Bitcoin can even be considered as the maximum possible value since it has already doubled in value this year. On what basis? The Fed is still tightening monetary policy, and there was both good and bad news for Bitcoin (like the crash of FTX, for example). Halving next year? We have already explained why each halving does not necessarily lead to a doubling of Bitcoin's price, which will support the feasibility of mining. And let's be honest, does anyone seriously believe that Bitcoin will become an alternative to fiat money or even displace them? Or that it will continue to grow until 2140 when, according to experts' calculations, the last coin will be mined? Bitcoin has a finite value, and even the current price far exceeds it. We do not support predictions that constantly forecast Bitcoin's growth to $100,000 or $250,000.

In the 24-hour timeframe, Bitcoin has rebounded once again from the $31,000 level and started a stronger downward spiral. As we said above, the minimum target for the fall looks like the rising trend line, which is currently around the $27,000 level. We believe that with this target in mind, one should sell cryptocurrency until strong buying signals are received. And one should remember the sideways channels on the 4-hour TF, which can keep the cryptocurrency inside them for a long time.