The last two trading days ended with the first cryptocurrency in the world rising by $8,600. Thus, the quotes won back exactly 50% of the fall over the previous 10 days. We still believe that the correction is not yet complete and may develop into a full-fledged downward trend. However, it should be recognized that the upward movement of the cryptocurrency in the last couple of days is really strong and may lead to the resumption of the upward trend. But we also believe that the strong growth on Monday and Tuesday indicates not just the desire of most market players to continue investing in bitcoin, but the attempt of several players (probably large ones) to maintain the upward trend. Those who already own bitcoin will try their best to convince as many new investors as possible that bitcoin will continue to grow and grow to at least $1,000,000, since everything works here approximately as in a financial pyramid. The more new investors come to the market, the more the bitcoin exchange rate will grow – the more profit will be received by those investors who bought earlier. Thus, we still remain in our opinion: the correction will continue.
At the moment, the quotes of bitcoin have worked out 50% on Fibonacci and this level can provoke a new downward movement. The quotes also worked out the Kijun-sen line, and a rebound from it can also provoke a round of downward movement. If this line and level are overcome, the resumption of the upward trend is probable.
As for the fundamental background, it remains not the most favorable for bitcoin. We have repeatedly mentioned the reasons why it supposedly fell by $15,000, it is only worth noting that nothing has changed since then. That is, there was no positive news for bitcoin. Moreover, it became known the other day that Tesla sold about 10% of its BTC reserves and this act of Elon Musk's company can be interpreted in different ways. Elon Musk himself said that the sale is not related to market factors, and the transaction itself is just a "liquidity check". However, we all understand that this may not be true. Bitcoin has significantly fallen in price in the last two weeks. And when an asset becomes very cheap, investors suffer a loss. Also, no one knows for sure and can not know how much Tesla actually sold bitcoins.
In technical terms, bitcoin has returned to the critical line and may bounce off it, which will be a strong enough signal for the resumption of the downward trend. The 50.0% Fibonacci level passes at about the same level. Thus, $55,859 is now a key level for bitcoin and its prospects. We are inclined to the option with rebounds and the resumption of the fall. In this case, the target is $47,000 per coin, and the next target is the $43,852 support level.
