Bitcoin continues to be in a half-asleep state in recent days, but it still tends to fall. It has already been mentioned that the cryptocurrency formally continues to remain inside the side channel of $29,700 - $40,700, but it has not been near the upper limit of this channel for a very long time. A month ago, the quotes regularly returned to the range of $35,000 - $40,000, but now the trades are mainly in the range of $31,100 - $36,100. Thus, from our point of view, this is another factor that indicates a very likely continuation of the fall of the first cryptocurrency. It can be recalled that the factors that continue to indicate bitcoin's fall, and with it the entire cryptocurrency market, remain unchanged:
The upward trend is complete. And in such cases, bitcoin goes into consolidation and correction for 1-2 years, during which it loses up to 80-90% of its value.
The Chinese authorities have banned financial organizations from providing any services related to cryptocurrencies, and mining has also been banned. And given that China was in first place in the world in terms of the number of mining equipment, this negatively affected bitcoin's position.
The US authorities are going to tighten the regulation of cryptocurrencies in the field of taxation in the near future. They believe that many investors evade taxes with the help of cryptocurrencies, so all exchanges and other crypto companies will be required to report all transactions worth more than $10,000 to the Tax Office.
Elon Musk has changed his rhetoric regarding bitcoin. It is now a slow, energy-inefficient, and expensive cryptocurrency, which has a lot of more attractive alternatives.
Investors clearly do not see any new reasons for buying the main cryptocurrency at this time.
All these reasons continue to put pressure on bitcoin. Today, it became known that its popularity is falling not only among traders and investors, but also among ordinary people. According to a study by Google, the number of search queries with the word "Bitcoin" has fallen to the values that were observed in mid-November last year. Then, the cryptocurrency was worth $16,000. This suggests that the next world hype has passed. Since bitcoin is getting cheaper, no one is interested in it. And since no one is interested in it, it means that it is getting cheaper. It is, indeed, a vicious circle. Thus, the decline of the quote of bitcoin is likely to resume in the near future, because there are simply no other options at this time. Institutional investors, according to some reports, keep bitcoin from falling below $30,000, but how long will they buy back all the coins on sale at this price? It should be understood that they will not be able to buy all the coins and rule the market without the participation of small traders and retail investors.
Technically, bitcoin has already fallen to the support level of $31,100 five times and is currently heading towards it for the sixth time. In the coming days, the cryptocurrency will again test the strength of the levels of $31,100 and $29,700. From our point of view, overcoming these levels, and a new drop in bitcoin, is only a matter of time. However, as long as these obstacles are not passed, "digital gold" retains the chances of growth to the level of $40,700. But this also requires the desire of investors to buy bitcoin.
