InstaForex

November 2, 2021

Peter Thiel does not advise buying Bitcoin at $ 60,000

 For the last few days, Bitcoin has been trading in a very limited range. As it often happens, the correction has begun, but the bears are very weak and the cryptocurrency simply refuses to further decline. In this case, the technical picture on the four-hour timeframe is now a little confused, and the price began to ignore the trend line, as well as important lines of the Ichimoku indicator. Now, we move to daily TF and see the following picture here. The price dropped to the critical line and rebounded from it yesterday. At the same time, the upward trend line continues to be relevant, which indicates that the upward trend is preserved. Therefore, all this suggests that Bitcoin's quotes can resume its growth at any time, at least as long as the BTC rate is above the Kijun-sen line.


PayPal's co-founder considers the price of $ 60,000 per coin to be overpriced


As always, disputes and discussions continue on Bitcoin regarding how much it will cost in a month or a year. But one thing is clear, buyers have clearly fallen near historical highs since not all participants in the cryptocurrency market believe that this cryptocurrency will be able to continue its growth or the market is just waiting for a new impulse, which will help to confidently break through the level of $ 64,700. At the same time, one of the founders of the PayPal payment system, Peter Thiel, said that the high cost of Bitcoin is an expression of high inflation in the United States. That is, he also makes a correlation between the indicators of the value of bitcoin and inflation.


"The fact that bitcoin is already worth $ 60,000 speaks of a crisis moment," Thiel said. He also believes that the Fed does not realize that it is impossible to print money without consequences for inflation. According to him, the current state of affairs points to the bankruptcy of central banks. Nevertheless, it should be borne in mind that the current growth of bitcoin is "hype", which means that the reasons for a new round of upward movement may not be necessary.


The difficulty of mining is growing


At the same time, the complexity of mining the first cryptocurrency increased by almost 8%. This is the eighth consecutive increase in complexity since the summer of this year when the minimum values were recorded. Thus, since the summer of this year, the total difficulty of mining coins has increased by 47% in total. It is also worth noting that the complexity of Bitcoin mining directly depends on the number of mining capacities that are currently working on the network since the summer drop in complexity was caused by the fact that a huge number of Chinese miners turned off their equipment due to a corresponding ban in China. After that, they began to relocate and turn on their equipment, which leads to a gradual increase in hash rate and complexity of calculations.


The trend on the daily timeframe continues to be upward, and market participants have not yet managed to consolidate below the critical line. Therefore, Bitcoin purchases with the targets of $64,700 and $67,000 remain more preferable right now. But closing the price below the Kijun-sen line will open the way for the cryptocurrency to the lower border of the Ichimoku cloud, as well as the trend line. In any case, judging by the daily timeframe, the end of the upward trend is not a threat to Bitcoin in the near future.