InstaForex

July 19, 2021

Bitcoin continues to linger around the level of $31,100

 The quotes of the main cryptocurrency are lingering around the level of $31,100 for the fourth day in a row. There has been no rebound or overcoming of this level yet, and the volatility of the cryptocurrency has fallen to almost zero. Thus, at this time, traders and investors can only wait for the compressed spring to straighten out. Yesterday, it was mentioned that bitcoin is currently trading quite unusually. Most of the factors, both fundamental and technical, continue to signal a further drop in the quotes of bitcoin. Most crypto experts are confident that bitcoin will continue its decline. But so far ,it has not managed to overcome the level of $31,100.


Meanwhile, the head of MicroStrategy, Michael Saylor, said that bitcoin does not pose any threat to the US financial system and currency. According to Saylor, it is better to call cryptocurrency digital property, rather than a currency, and it poses a greater threat to other assets, such as gold or real estate. "I don't think the United States government is threatened by real estate or buildings or companies or gold," said the CEO of MicroStrategy. Perhaps Saylor is trying to keep bitcoin from falling again with these words. It can be recalled that in the last few months, the cryptocurrency market has been waiting for news not only from China, but also from the United States, where the authorities also intend to tighten the regulation of the circulation of cryptocurrencies. In particular, it is planned to tighten the tax legislation related to digital assets. But no concrete decisions have been made yet, so bitcoin continues to balance on the edge of the abyss, and many billionaire investors are trying to convince the market that bitcoin will start growing again and will definitely reach the $100,000 mark per coin. By the way, it was Michael Saylor who lost the largest percentage of his fortune among all major investors in bitcoin during the last collapse of the cryptocurrency. Because not only bitcoin was falling down, but also the value of MicroStrategy shares. And the company itself is the largest public investor in bitcoin, which has continued to buy "digital gold" even when the "bullish" trend has already ended. Thus, Michael Saylor is extremely interested in bitcoin stopping its decline. His company, which was once associated with software development, is now associated with bitcoin by everyone. When the first cryptocurrency grows, it has a good effect on the company itself and its value, and when it falls -- not very much.


Thus, the fundamental background for bitcoin and its "counterparts" remains quite negative. Unfortunately, positive news has simply not been received recently, so investors and traders simply have no reason to make new large purchases. Institutional traders and bitcoin whales are trying to keep the exchange rate from falling again, but it is unlikely that they will be able to do this.


Technically, bitcoin fell to the level of $31,100 for the sixth time. Thus, the cryptocurrency has already begun to test the strength of the level of $31,100, and in the near future, it may begin to test $29,700. From our point of view, overcoming these levels, and therefore a new drop in bitcoin, is only a matter of time. However, as long as these obstacles are not passed, digital gold retains purely theoretical chances of a new growth to the level of $40,700. However, this also requires the desire of investors to buy bitcoin, which is not yet observed.