So, at the moment, bitcoin is trying to form a new downward trend. Unfortunately, bitcoin, which is just beginning to rise from its knees, came under a sharp stream of criticism last week. In particular, he was criticized by Warren Buffett's business partner and billionaire Charlie Munger. Earlier, the manager of Fundstrat, Tom Lee, said that "billionaire pensioners" who are skeptical about cryptocurrencies and do not want to invest in them, although the main capital in the United States is concentrated in their hands, are to blame for everything. Thus, even the culprit was found that new-fangled investors who believe that they just need to buy more bitcoin and wait cannot get rich at the expense of those who have earned money wisely, with the right approach and years of training. This is exactly the idea voiced by Charlie Munger, calling bitcoin "garbage". Of course, geopolitics is of the highest importance now. This week, we could already see how gold is rising in price, the US stock market is falling, and all cryptocurrencies are declining. What is it if not the flow of capital from risky assets to safe ones?
Geopolitical tensions in Europe and the Fed's rate hike may cause a new drop in bitcoin.
A lot has already been saying about geopolitics this week. In principle, the whole world was talking only about geopolitics. Even US President Joe Biden, who, unlike Donald Trump, does not like to give interviews and speak in public, has stated several times that the situation remains a crisis, and a military conflict could begin any day. However, JPMorgan investment bank expert David Kelly also expects a negative scenario. He said that as soon as the Fed starts raising the rate, a collapse may occur in the cryptocurrency market. Kelly notes that the last "bullish" trend occurred during a period of ultra-soft monetary policy and money coming from nowhere into the economy. Now, when the reverse process begins, bitcoin can show the "opposite". We fully agree with David Kelly's position, despite all the piles of forecasts from pseudo-experts who continue to say that bitcoin will grow and will conquer the $ 100,000 mark by the end of this year alone. Recall that last year we heard the same predictions that did not come true. The apotheosis of what is happening was the new forecast of the analyst PlanB, which with its Stock-to-Flow model has gained some popularity in the cryptocurrency community. However, his predictions came true in 2021, did not come true at the beginning of 2022 and now he believes that we should wait for the growth of bitcoin and the renewal of the highs by the end of 2022. In general, those who are personally interested in the growth of cryptocurrencies continue to say that bitcoin will grow. Because it is profitable for them.
In the 24-hour timeframe, the quotes of the "bitcoin" failed to overcome the Ichimoku cloud and fell today to the critical line. Now there is only one obstacle on the way to the $ 31,100 level - Kijun-sen. If traders manage to overcome it, then the drop in quotes of the "bitcoin" will continue almost guaranteed. Well, unless, of course, only tomorrow Elon Musk announced that now Tesla works only with bitcoin and refuses fiat money, and SpaceX will launch satellites and rockets funded only by cryptocurrencies.
