InstaForex

August 16, 2021

The markets continue to buy cryptocurrency until new legislation is introduced in the States.

 Over the past three weeks (or a little more), bitcoin has managed to rise in price by $ 18,000. And this is the whole problem of the first and main cryptocurrency in the world. $ 18,000 is a growth worthy of the strongest upward trend. Such growth of the cryptocurrency shows infrequently, and at this time, we can not conclude that it was appropriate. To begin with, the fundamental background for bitcoin remains extremely weak. In China, all miners were kicked out, and the legislation concerning cryptocurrencies and any digital assets was tightened. New legislation is being developed in the States, which will also be designed to tighten the regulation of the cryptocurrency segment. Therefore, the war of the authorities of the two largest countries with bitcoin clearly cannot contribute to its growth.


Although bitcoin has already taken a strong place in the modern financial system, this does not mean that the central banks of the largest countries of the world will turn a blind eye to a decentralized and uncontrolled currency. Of course, it is unlikely that bitcoin and its "brothers" can already be banned. Given that you can own bitcoin in any country, and there is no link to the geography of bitcoin, then in any case, everyone can take possession of the digital currency one way or another. However, governments and central banks are almost guaranteed to control this area and collect as much taxes from it as possible. Thus, in the near future, bitcoin may seriously lose its popularity. It should be understood that many large and institutional investors cannot and do not want to buy bitcoin through various exchangers or dubious Internet sites. For such large clients, bitcoin can be bought on stock exchanges, through major international banks, and so on. However, any such operation will "pass" through the US Tax Administration. And, there is no doubt that many countries will introduce similar legislation in the future. Therefore, the current growth of bitcoin is increasingly similar to the desire of traders and investors to buy "full." At the same time, the new tax legislation has not yet begun to take effect in the United States. After all, there were no fundamental reasons and grounds for its growth.


In technical terms, bitcoin continues to be in an upward movement on the 24-hour timeframe and has reached the level of $ 47,500. This level is important because it is the minimum of April 26 and 50% of the movement from the absolute maximum of the value to the minimum of 2021. At the moment, bitcoin has bounced off this level, so there are expectations of a new drop in quotes to the level of $ 29,700, which we are counting on. However, on the 4-hour timeframe (to be discussed in the next article), a trend keeps the current trend upward. And we remind you that no matter what the fundamental background is, if there is a clear technical trend for the instrument, you need to trade according to it.