27.05.202117:57 Forex Analysis & Reviews: Cryptocurrency market analysis on May 27. Iran bans cryptocurrency mining until September

The wave counting of the 4-hour chart of the bitcoin cryptocurrency is starting to get a little more complicated. Yesterday, the cryptocurrency attempted to rise to the 38.2% and 61.8% Fibonacci levels, which I consider to be the closest targets. However, from the very morning of May 26, a new internal downward wave began to form, within which the main cryptocurrency had already lost $3,000 in value. Thus, at the moment, a series of waves a-b-c cannot be considered complete, and, most likely, it will take on a more extended and complex form than I currently assume. After a sharp drop in bitcoin quotes, the market will take some time to recover in any case. Moreover, at this time, the news background is clearly not conducive to new purchases of bitcoin. Thus, a pause is needed. And during this pause, bitcoin can build complex corrective structures or the usual a-b-c series, but at the same time, I believe, it will continue to remain in the range of $32,000-$42,000. That is, in the coming weeks, one should hardly expect a new sharp drop or, conversely, a strong increase.

The news background for bitcoin remains very depressing. The markets have not yet had time to digest the information that China is going to completely ban the mining of cryptocurrencies, when news from Iran immediately came, where the country's authorities announced a complete ban on the mining of cryptocurrencies for three months. This decision is due to the lack of electricity in the country due to dry weather and increased consumption in other areas. According to the President of the country, Hassan Rouhani, the ban on mining applies to both authorized miners and unauthorized ones. It is not yet known whether the ban will be lifted in September.

At the same time, Tesla CEO Elon Musk held a meeting with American mining companies to discuss reducing greenhouse gas emissions from mining bitcoin and other cryptocurrencies. The parties agreed to cooperate in this direction, which for some time even provided support for bitcoin quotes. Although, not for long. The negative news background still prevails at this time.

There are some other news in the cryptocurrency environment right now. The markets are trying to revive bitcoin by all means, but the actions, statements, and comments of several hundred investors and traders cannot outweigh the much larger news from the United States, China, Iran, Turkey, and so on. The trend can be traced very well: the authorities of many countries are determined to tighten the regulation of the cryptocurrency sphere as much as possible or to ban it altogether. Let me remind you that the central banks of many countries have repeatedly warned that trading in cryptocurrencies is unsafe, very risky. It seems that bitcoin is now entering a phase where central banks have begun to move from warnings to concrete actions. Naturally, with the help of the authorities.

Based on the analysis, I believe that the three downward wave structure is complete. The current wave counting indicates a possible rise within wave c, so I recommend small purchases of bitcoin for each MACD upward signal with targets located around $42,500. An unsuccessful attempt to break through the 61.8% Fibonacci level could lead to a new decline in bitcoin, but I hope that in the coming year, the cryptocurrency will build complex corrective structures and will not resume the upward trend.