Bitcoin crashes again! - Kakiforex | Forex markets for the smart money. Bitcoin crashes again! Bitcoin crashes again!

May 20, 2021

Bitcoin crashes again!

 Yesterday, we said that bitcoin by some miracle was refrained from fixing below the level of $43,852. However, it did not hold on for long. Yesterday's trading still closed below the level of $43,852, which was a signal for the continuation of the correction. The quotes of the first cryptocurrency in the world fell by another 3.5 thousand dollars and at this time, "digital gold", which should grow to $100,000 this year, is trading around the level of $40,000 per coin. Thus, the fall continues and the cryptocurrency has fallen by $20,000 in just 10 days. Still, there are "crypto experts" who firmly believed that bitcoin would grow forever and continuously. It would probably be interesting to watch such a tool, but the stronger bitcoin grew in the last year, the more it resembled a banal financial pyramid or "bubble". And sooner or later, all "bubbles" burst, and all the financial pyramids collapse. Thus, bitcoin can now fall in price up to $30,000. Earlier, two global upward trends on bitcoin ended in the same way – a fall of 80-90% of the value. All the arguments of crypto experts that now this can no longer happen since too many large investors and institutions have entered the market, who can afford to hold bitcoin for a very long time and do not count on short-term profits, are now causing laughter. As practice has shown, large investors also do not like to receive losses, so there is no doubt that most of them are now selling bitcoin as well as small traders and investors. I wonder if Tesla is the first on this list of sellers? It should also be recalled that the last growth of bitcoin, by and large, was accidental, as it was clearly provoked by the pandemic crisis and the injection of huge sums by the US government into the economy. The extra money simply went into the riskiest investments, as people wanted to earn even more and save themselves from the inevitable inflation. Now, it would be interesting to hear new forecasts from "crypto experts". They would probably say that bitcoin will resume the upward trend in any case. This is possible, but it is unlikely to be anytime soon. Recall that many crypto experts who regularly give a forecast of the value of bitcoin are large investors or simply associated with the crypto industry. Thus, it is simply beneficial for them that more and more new investors and investments come to the market, since it is due to this influx that the growth of bitcoin is carried out. Accordingly, in order for the current investors to get richer, new investors are needed. But, as it turned out, at the levels of about $60,000 per coin, there were few willing to buy. And bitcoin can not stand for a long time in one place near its absolute highs. For a long time, the bulls tried to maintain the upward trend, but in the end they did not succeed. Meanwhile, MicroStrategy bought another $10 million worth of bitcoins.


Technically, bitcoin is fixed below the support level of $43,852, so we expect a continuation of the downward movement. Only while this article is being written, bitcoin managed to fall in price by $800. Thus, today can become absolutely "black" for bitcoin. The nearest target is the level of $38,467, which is almost reached. The next target is the $30,501 level.