Bitcoin stalled near the important level of $47,500 and was unable to move further. In principle, there is already an upward trend in cryptocurrency that has been going on for almost a month. Thus, a $2,500 rollback downward is just a small correction, and not a signal of the end of the trend. Moreover, earlier the price was no longer able to overcome the Ichimoku cloud once, and at the moment, it is again inside this cloud and cannot leave it through the lower border yet again. Therefore, despite the absence of a positive fundamental background for Bitcoin, as well as our expectations of a new fall to the level of $29,700, it should be admitted that the upward trend remains (in the context of the 4-hour timeframe). Therefore, it is not recommended to sell cryptocurrency until the price consolidates below the trend line.
Meanwhile, Grassnode has calculated that due to the recent growth of bitcoin by $18,000, the absolute majority of investors are in profit. In just one month, about 3.6 million coins became profitable out of the total amount currently in circulation, equal to 18.7 million. And in total, out of 18.7 million coins, 16.1 million are now profitable for their investors, that is, about 86%. Grassnode analysts believe that a new upward trend is now forming, but many cryptocurrency experts remain skeptical about forecasts like $100,000 per coin in 2021. Recently, there has been an outflow of investment from bitcoin funds, and the current price levels for bitcoin may seem very attractive to many owners for sale. As we said earlier, the main factor in the growth of the value of the bitcoin is the belief or lack thereof in its growth by market participants. Taking into account that the long-term "bullish" trend is over, now the corrective scenario of the development of events is still more relevant. Moreover, in the last four weeks, there has simply not been such a positive fundamental background for Bitcoin to rise by $18,000. We consider this to be a coincidence and expect the market to start taking profits on long positions.
Technically, on the 4-hour timeframe, Bitcoin has not yet managed to overcome the $47,500 level. However, the upward trend line still supports the upward movement. Thus, until the price consolidates below this line, we do not recommend selling Bitcoin. If this happens, the first target for the decline will be the level of $43,852. From our point of view, there are still high chances for a new drop in the quotes of the main cryptocurrency up to the level of $29,700.
