Bitcoin is kept afloat above $29,700 - - Financial Market Media No. 1 in the World Bitcoin is kept afloat above $29,700 Bitcoin is kept afloat above $29,700

June 25, 2021

Bitcoin is kept afloat above $29,700

 On Thursday, the first cryptocurrency in the world made its third attempt to overcome the level of $31,100, and at the same time the level of $29,700. And again, it was unsuccessful. On the one hand, this is good for bitcoin, since the more unsuccessful attempts to continue moving down, the more likely it is that the cryptocurrency will go up. On the other hand, the fundamental background for bitcoin remains negative, and this is noted by analysts and experts around the world. Many now expect a further drop in the quotes of bitcoin and a lot of fundamental and technical factors really speak in favor of this. Thus, yesterday's price rebound from the levels of $29,700 and $31,100 may just be another rebound before BTC breaks through these levels and rushes further down. Recall that at this time, there is a very difficult situation for bitcoin in China, where the country's authorities are expelling miners in the literal sense of the word. In addition, all financial organizations of the country are prohibited from providing any services related to cryptocurrencies. Thus, there is nothing surprising in the fact that bitcoin can not show a new upward trend. Also, participants of the cryptocurrency market are waiting for news from the United States, where the country's authorities can similarly greatly tighten the circulation of all cryptocurrencies by connecting the Tax Administration. In addition, there is no recent support from Elon Musk, who played a very significant role in the growth of bitcoin to $65,000 in April. The only thing that bitcoin currently has is forecasts from various billionaires and bitcoin enthusiasts, who continue to believe that in 2021 the cryptocurrency exchange rate will update its absolute highs. We have already explained repeatedly in the previous articles how to treat such forecasts, and we consider them untenable. At the same time, it is beneficial for most crypto-billionaires to maintain a high demand for bitcoin, since it increases in price only in this case. Thus, crypto-billionaires and other bitcoin supporters are now acting in the best traditions of financial pyramids, where in order for the top participants to get rich, a constant influx of new depositors is needed. The same is true with bitcoin. In order for it to grow in price, a constant influx of new investors or investments is needed. And how can this be done if the only factor on which the price of bitcoin is based is the faith of market participants in it? Therefore, it is necessary to increase faith. And to do this, it is artificial to support the opinion that bitcoin will rise in price to [any value] in any case. This is exactly what many large bitcoin owners are doing now. MicroStrategy also continues to buy coins, but so far all these actions do not lead to a noticeable increase. We continue to expect a long consolidation of bitcoin, which will take 1-2 years.

In technical terms, bitcoin fell to the support level of $31,100 and to the previous local minimum of $29,700 and bounced off them. Formally, the price has already turned up and can continue a new round of movement to the upper border of the side channel – $40,700. However, it seems that bitcoin is aiming to overcome the level of $31,100. And the consolidation of quotes under the level of $31,100 may signal the readiness of the cryptocurrency for a new fall. Recall that many crypto experts speak in favor of the fact that the main cryptocurrency will continue to become cheaper and may fall to $19,000 - $24,000 per coin, and some even predict the figure of $10,000.