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In the last few weeks, bitcoin has made a lot of traders and investors nervous. This is possibly because of psychology. Half of the world treats bitcoin as an asset that is constantly growing in price, so if it does not increase in price, then something abnormal is probably happening. Now, unlike Ethereum, Bitcoin has not been able to update its highs since mid-April, and the market is already in some kind of panic. A statement such as: "the pound has not updated its highs against the dollar for 3 weeks!" or "Microsoft shares have not increased in price for a whole month!" is indeed absurd. However, for the cryptocurrency market, especially now that money in the United States is increasing every month, this statement fully reflects the reality. Yesterday, bitcoin failed to overcome the level of $58,000 per coin again. We have repeatedly talked about this level, which is nothing more than the 61.8% Fibonacci level. Thus, it has a certain power. Until this level is overcome, the correction scenario for the first cryptocurrency in the world remains more relevant. We continue to expect the "digital gold" to fall at least to the level of $47,000 per coin.
The fundamental background for bitcoin leaves much to be desired recently. It seems that the globalization and popularization of bitcoin continues to gain momentum, but at the same time all the positive news is crushed by the fact no asset can grow constantly in price. Recent data suggests that more and more investors are paying attention to alternative coins, which leads to an outflow of capital from bitcoin, and to a banal loss of new investments. Investors began to be interested in those cryptocurrencies that have not yet been promoted as bitcoin, and therefore have a higher growth potential. Ergo, from our point of view, BTC will continue to fall.
However, it should also be noted that the hit parade of forecasts on the cost of bitcoin continues. For example, the head of the analytical company CryptoQuant, Ki Young Ju, said that bitcoin will rush up again in the near future. The CEO came to this conclusion after studying data from cryptocurrency exchanges, which indicate that the outflow of bitcoin has begun. Simply put, there are fewer offers to sell bitcoin coins on the exchanges. Hence, the supply decreases. If at the same time the demand does not fall, then the bitcoin exchange rate should grow. However, demand is a very complex thing and it is also very difficult to calculate it. Moreover, the demand for bitcoin seems to be falling right now. Thus, it seems that in general, bitcoin is beginning to lose its leading position in favor of ethereum or binance coin. One way or another, many crypto experts still continue to wait for a new round of strengthening of "digital gold".
In technical terms, bitcoin has bounced off the level of 61.8% on the Fibonacci four times already and is now heading down again. Thus, the further growth of "digital gold" is still in doubt. The fundamental background seems to have improved slightly for bitcoin, but the cryptocurrency has not managed to extract any special dividends from this. If the $58,000 level is overcome, the upward trend is likely to resume. However, the chances of a corrective fall remain high.
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