InstaForex

September 28, 2021

US Congress will vote for the "infrastructure package" on September 30

 Bitcoin continues to stay inside the triangle, which is a descending trend line and a support level of $ 40,746. In recent weeks, the price has rebounded from the level of $ 40,746 and cannot consolidate above the Ichimoku cloud. Therefore, everything should be decided in the coming days – either the level of $ 40,746 or the trend line will be broken. Depending on this, a further decline or new growth of the world's main cryptocurrency can be expected. We believe there are more chances for the decline to resume. The reasons for this have already been repeatedly mentioned. However, a couple more reasons were added to this list yesterday.


First, the author of the best-selling book "Rich Dad, Poor Dad", Robert Kiyosaki, said that the stock market could collapse as early as October. And although he did not say anything like that about the cryptocurrency market, if one market collapses, the collapse of another may follow. Moreover, Bitcoin is a risky asset, and risky assets are disposed of first of all when it comes to the occurrence of a dangerous situation. In addition, Kiyosaki said that the United States can follow the example of China and completely ban bitcoin. According to the author, China decided to abandon cryptocurrencies in order to introduce a digital yuan into the financial system, which it could fully control. Kiyosaki says this is a common practice for communist countries. However, if the US authorities decide to get rid of bitcoin, then no one will be able to prevent them, and in his opinion, the country itself will come closer to the communist regime.


Second, it became known that the US Congress will vote for the "infrastructure project" on September 30, which has caused a huge amount of debate among participants in the cryptocurrency market in recent months. It was learned that the US government is going to raise about $ 28 billion from taxes on cryptocurrency transactions. In particular, all transactions over $ 10,000 will have to go through the IRS. If earlier, these amendments to the tax code were only a distant future, then in the near future, they may become a reality. This will mean that many investors will refuse to invest in Bitcoin, as everyone knows that many people use this cryptocurrency for illegal transactions. In particular, tax evasion. In any case, the more the legislation related to bitcoin and the entire crypto market is tightened, the higher the probability that bitcoin will continue to fall, and not start new growth. Nothing will prevent all forecasters who are now talking about $ 100,000 per coin or $ 250,000 from saying a year later that governments have destroyed Bitcoin and they no longer believe in its growth. Therefore, such news should be taken very seriously. Moreover, the US can also create a digital dollar, which will be designed to displace Bitcoin and other cryptocurrencies.


A downward trend can still be observed in the four-hour timeframe. Bitcoin declined to the support level of $ 40,746 four times and rebounded each time. Along with this, the price also failed to consolidate above the Ichimoku cloud and above the trend line. Therefore, it cannot be said that the bears are currently weak. If the trend line is broken, it is recommended to buy Bitcoin with the targets of $ 46,600 and $ 51,350. But if the level of $ 40,746 is broken, then a further decline can be expected to the level of $ 31,100.