Bitcoin takes another hit - Kakiforex.com - Financial Market Media No. 1 in the World Bitcoin takes another hit Bitcoin takes another hit

April 21, 2021

Bitcoin takes another hit

 Bitcoin continues to fall on Tuesday, April 20, against the background of the banal lack of a positive fundamental background that could cause the resumption of growth in quotes. However, from our point of view, everything is going exactly as it should be. As repeatedly pointed, the upward momentum is weakening, so it is becoming difficult for bitcoin to rise in price. Each subsequent price peak was located at a smaller distance from the previous one. Thus, if a new powerful influx of investment in bitcoin does not begin soon, the cryptocurrency may not just correct, it may collapse. Traders lost about $9 billion on the forced closing of longs during Sunday alone when the cryptocurrency collapsed by 15% of its value. The fundamental background of recent days is indeed quite negative.


First, there were serious power outages in one of the largest mining regions in China. Second, according to rumors, the US Treasury Department is preparing several large fines for unnamed financial organizations for money laundering using bitcoin. Third, and this message is the news of the day, as it turned out, almost all the top managers of the recently listed CoinBase have sold their shares. In total, the leaders of the cryptocurrency exchange got rid of shares worth about $4 billion, which immediately caused the anger of the crypto community. For example, one of the most famous critics of bitcoin, Peter Schiff, wrote on Twitter that 5 leading top managers of CoinBase sold 71%, 63%, 86%, 97%, and 100% of their shares. The author of the cult work "Black Swan" Nassim Taleb supported Schiff and wrote on his account: "When the CFO drops the shares, you realize that something is happening." Representatives of the exchange itself immediately rushed to state that, unlike an IPO, a direct listing does not involve the issue of additional shares. That is, the sources of shares on the NASDAQ could only be the shares of the company's executives and investors themselves.


At the same time, the Binance crypto exchange received information that after a 15% drop in value on Sunday, about 20,000 bitcoin coins were withdrawn from it, totaling more than $1 billion. Thus, the fundamental background is now unfavorable for "digital gold", and the opinions of analysts and experts are divided. About half of them believe that bitcoin will now continue the correction, and in the coming months, it may fall to the value of $40,000 per coin. The second half is in favor of the fact that the growth of bitcoin quotes will resume in the near future. We believe that the key level is $50,770. If bitcoin falls below this level, it will be very difficult to avoid a more serious fall.