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The Bitcoin situation is becoming more and more interesting. The day before yesterday, the quotes of the first cryptocurrency bounced off the Kijun-sen line on the daily timeframe, and yesterday-from the Senkou Span B line. Ergo, bitcoin was squeezed in a very narrow range between the levels of $52,359 and $55,859 at the moment. This is about a range of $3.5 thousand wide, but for bitcoin, this is not a distance. Therefore, the cryptocurrency now has problems in order to continue this very round of correction after a strong signal for a new round of correction. It is advisable to observe two lines: Kijun-sen and Senkou Span B. As you can see, the lines of the Ichimoku indicator work perfectly in the cryptocurrency market.
As for the fundamental background, it remains the same as it has been in recent days and weeks. There was no particularly positive news. Major investment banks and payment systems continue to integrate bitcoin into their operations. Tesla sells bitcoins, Facebook does not buy them, and Chinese companies invest with pleasure. But there is no high-profile news at the moment. One can even say that bitcoin is now losing popularity, as its dominance index has recently fallen below 50%, and more investors are considering other cryptocurrencies as investments, such as Ethereum and Dogecoin. Thus, today and in the next few days, we need to pay special attention to the "digital gold", since at this time its fate is clearly being decided for the coming weeks. The question is critical: either the resumption of the upward trend, or the continuation of the correction, which may be the beginning of a new downward trend. Bitcoin is unlikely to make long corrections within the existing trend. Therefore, the longer the price can not resume growth, the less likely it is that the upward trend will resume. According to the trends of 2013 and 2017, it is clearly visible that the growth was rapid and almost recoilless each time. But further downward trends were, on the contrary, smoother and slower. Therefore, the current picture is very similar to the end of an upward trend, especially since the quotes have left the limits of the ascending channel.
In technical terms, bitcoin returned to the critical line and the 50.0% Fibonacci level and bounced off them, so the chances of a new drop in quotes increased. However, at the same time, BTC bounced yesterday and from the Senkou Span B line, so the current picture is a little vague and it requires a couple of days to clear up. If the quotes are fixed above the critical line and the level of 50.0%, the upward trend will most likely be resumed. Otherwise, a new drop in quotes with targets of $47,000 and $43,852 can be expected.
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