The fundamental background for bitcoin remains very weak and negative. China continues to tighten its legislation and prohibit mining on its territory, as well as any speculation in cryptocurrencies. Yesterday, it became known that all banks in China will be prohibited from providing any services to their customers related to cryptocurrencies. Earlier, it was reported that Beijing will completely ban any services with digital assets to all financial organizations of the country and, most likely, it will be so. Thus, the situation continues to deteriorate for bitcoin. Of course, it is still possible to own cryptocurrencies outside of China. There are many countries where it is not forbidden to mine it, own it, trade it, and so on. Thus, those who really want to do this business will find an opportunity to continue doing it outside of China. But ordinary Chinese traders will probably be cut off from the cryptocurrency market or will be forced to trade cryptocurrencies semi-legally. In general, such a tightening of the legislation in the country where the largest number of mining capacities is concentrated, clearly does not contribute to the strengthening of the bitcoin quotes.
Meanwhile, MicroStrategy, which was once engaged in the development of analytical software, continues to buy bitcoins. However, it already does this with the raised funds. Recall that most recently, the company placed 7-year bonds maturing until the end of 2028 in the amount of $500 million. Yesterday, it became known that with this money, the company purchased 13,000 bitcoin coins at the rate of $37.6 thousand. Thus, as we can see, the company is not even too "worried" about the bitcoin exchange rate itself and the search for the most favorable rate to buy. Now, the software developer has 105,000 bitcoin coins on its balance sheet, is the largest holder of "digital gold" among public companies and recently announced that it is going to raise about a billion dollars to buy new coins by selling part of its own shares. All this madness, of course, is very interesting to watch from the outside, but it becomes scary for the prospects of the company. We do not oppose bitcoin as an investment tool, but given its high volatility, tendency to collapse by 80-90% of the value and absolutely vague prospects, investing several billion dollars in it, and even borrowed funds, looks like a somewhat adventurous step.
In technical terms, on the 4-hour timeframe, bitcoin quotes declined to the updated support level of $31,100. A price rebound from this level can trigger a round of upward movement within the side channel of $31,100 - $41,000. But overcoming the level of $31,100 will open the way for sellers to the level of $24,000 per coin.
