28.08.202212:46 Forex Analysis & Reviews: Bitcoin has failed to break through the $24,350 level in more than a month

Over the past couple of weeks, the cryptocurrency has fallen by $ 5,000. Recall that we have repeatedly talked about $ 24,350 as a strong resistance level in recent articles. Bitcoin has tried to overcome it three times to continue the kind of correction it has been in for the past 2.5 months. The total "bitcoin" is adjusted for such a period by $ 7,500. Is it necessary to say that the movement of $ 7,500 in 2.5 months is a meager amount for the first cryptocurrency in the world? But the most important thing is something else – bitcoin failed to overcome the level of $ 24,350, failed to overcome the Senkou Span B line, and failed to overcome the trend line. Therefore, everything shows that the decline in its quotes will continue for at least several months. We also remind you that we support the option of a further drop in the "bitcoin" and believe it can drop to $ 10,000 per coin, or maybe even lower. Now no one doubts that the "bullish" trend is over. Therefore, we are inside the "bearish" trend. And any trend on a 24-hour TF is at least a year or two old. Thus, now the nearest target for the fall is the last local minimum near the 127.2% Fibonacci level (marked in the illustration). Next, traders will try to take the cryptocurrency to $ 12,426. It will be some intermediate limit to the fall.

I want to note that Bitcoin is already at very low levels. For example, many analytical agencies call the level of $ 20,000 the cost of bitcoin mining (of course, an approximate or weighted average since electricity costs differ in different places). Thus, right now, bitcoin is relatively cheap, but for some reason, investors and institutions are in no hurry to buy it at attractive prices. From our point of view, this is a very important point. If large and medium-sized players expected that the "bearish" trend would end in the near future, they would have started buying the "bitcoin" in advance. But they don't, which means they expect a new fall. Also, for some reason, there are no predictions that bitcoin will soon conquer the world's financial system, displace all fiat money, and cost $ 100,000 per coin.

In the 24-hour timeframe, the quotes of "bitcoin" could not overcome the level of $ 24,350 and fell below the Ichimoku cloud. Thus, the target for a new fall is the level of $ 12,426. We believe there are still no technical grounds for growth, and the rate of 5–10 thousand dollars per coin will become a reality in 2022. Moreover, there was not even a single attempt to gain a foothold above the trend line. A rebound from $ 24,350 is a new signal for sales, and consolidation below $ 18,500 will confirm this signal.