Bitcoin is unlikely to fall under the ban of the US Federal Reserve - Kakiforex | Forex markets for the smart money. Bitcoin is unlikely to fall under the ban of the US Federal Reserve Bitcoin is unlikely to fall under the ban of the US Federal Reserve

April 5, 2021

Bitcoin is unlikely to fall under the ban of the US Federal Reserve

 Bitcoin spent four days near the level of $ 60,000 per coin, however, it never managed to overcome this level. As a result, the price rebounded from this level and began a new round of correction. At least that's what it looks like right now. Recall that earlier we have repeatedly concluded that bitcoin at this stage of its evolution has reached the maximum value. Yes, many crypto experts and analysts predict a minimum of $ 100,000 in 2021. However, from our point of view, to continue to grow, bitcoin needs to at least adjust. At the same time, not by 10-15%, but much stronger. We have already drawn the attention of readers to the fact that the "bullish" mood of the markets is weakening. This is seen in the illustration below. Each subsequent round of growth is weaker than the previous one. Thus, the chances of a fairly strong decline are growing. As before, we highlight the level of $ 52,300 as an important support level, in case of overcoming which the price can fall to $ 44,000. However, the bulls are now running out of strength, and the bears are not yet included in the market.

Meanwhile, the head of the Gemini cryptocurrency exchange, Tyler Winklevoss, believes that bitcoin has passed the point where investors and traders should have feared the introduction of a ban on cryptocurrencies in the United States. According to the cryptocurrency billionaire, bitcoin has reached a level of popularity that will not allow the US authorities to ban its use. In 2013, Winklevoss allowed for a possible ban on cryptocurrencies, but not now. According to the billionaire, at this time, we are talking not just about cryptocurrency, but about many companies in the cryptocurrency segment that work for the US economy, have a strong influence on the stock market, and also give people jobs. Winklevoss also believes that it will be necessary to significantly change the US legislation for the ban to be legal. Recall that other market experts believe that a ban is still likely, as governments and central banks will strive to keep the financial system under control and will not allow the existence of a decentralized financial system that is not under their control. Ray Dalio, head of Bridgewater Associates, believes that states will seek to control all money supply and flows, so bitcoin and other cryptocurrencies may eventually be banned. He also cited the example of the Indian authorities, who are now actively considering a bill to completely ban the ownership, mining, and any operations with cryptocurrencies. As you can see, there is no consensus on this issue yet, and the US government and the Fed themselves do not give any signals to the markets that cryptocurrencies can get banned. Also, the Fed is clearly in no hurry to create its digital currency, which hypothetically can compete with bitcoin, but at the same time be state-owned and be secured by the government.

In technical terms, bitcoin was on the verge of breaking the level of $ 52,300 for several days, but in the end, the bulls still held the initiative in their hands and a new round of upward movement began. However, the buyers did not manage to overcome the level of $ 60,000. The number one cryptocurrency in the world may need an influx of new investors in the near future, otherwise, most of the market participants may consider that the current value of BTC is this maximum and start getting rid of it. We still allocate two important supports for the "cue ball" - $ 52,300 and $ 44,000. Overcoming any of them can provoke a strong downward movement.