03.08.202107:56 Forex Analysis & Reviews: Bitcoin crashed down on Monday

Bitcoin fell by 2.5 thousand dollars during the last trading day. This is exactly the kind of movement we talked about in yesterday's review. From our point of view, the first cryptocurrency in the world continues to remain in the correction and consolidation scenario, so it will try to return to the level of $29,700 and overcome it. Such forecasts do not mean that bitcoin, in principle, cannot show growth. As we have repeatedly noted, we expect a year or two of consolidation of the first cryptocurrency. During this time, there may be ups and downs. This is clearly visible in those periods when bullish trends ended in the past. The price did not immediately fall by 80% and did not spend the rest of the time before the formation of a new bullish trend at absolute lows. Thus, the latest rise in the price by more than $10 thousand does not mean anything at all and is not something special. Moreover, since the level of $40,700 was broken, the bulls may try to push bitcoin even higher, for example, to the levels of 38.2% by Fibonacci and $43,852, which turned out to be unprocessed during the last round of growth. But then we still expect a new round of falling quotes.

Also, it should be noted that the fundamental background has not changed in recent days or even weeks. Bitcoin received a bit of support from Elon Musk, Tesla, and SpaceX, as well as Cathie Wood and Jack Dorsey a couple of weeks ago, but that's it! Fundamentally, nothing has changed at all for bitcoin. Moreover, the States will still tighten the tax legislation regarding bitcoin. Simply put, almost all subjects of the cryptocurrency segment in the United States will fall under the scope of the Tax Administration after the law comes into force. Naturally, this can hardly suit many investors and miners, so the demand for bitcoin and its "counterparts" can only decrease. We would also like to draw attention to the nature of forecasts from most experts, which you can read on other resources. One very strange feature is that if bitcoin becomes cheaper, then the majority predicts its further fall, and if bitcoin becomes more expensive, then the majority predicts its further growth. You do not need to be a genius in order to predict a fall when the asset is already falling. From our point of view, these forecasts are absolutely untenable and incompetent. They are akin to various millionaires and functionaries of the cryptocurrency market, who constantly declare that bitcoin is about to climb to the level of $100,000, or is already preparing to do so. Each trader should have his own trading vision of what is happening. At this time, there is a greater probability of falling back to $31,100 and $29,700.

Technically, bitcoin has worked out the target level of $40,700 with a margin, and got to the $42,300 mark. However, for the second day in a row, bitcoin is falling. We still expect a decline in the quotes of the main cryptocurrency to the level of $29,700. So far, the fundamental background remains clearly not on the side of bitcoin. Therefore, it is now possible to sell the cryptocurrency instrument.