04.06.202108:02 Forex Analysis & Reviews: The growth is short-lived. Bitcoin is falling again!

Over the past day, bitcoin has grown in half to the level of $39,200 per coin, but it began a new decline this morning, which may continue to at least $35,200. The only conclusion that can be drawn from the last moves of bitcoin is that investors and traders are still not going to save Bitcoin. Contrary to popular belief, which is spread by investors themselves, companies whose activities directly depend on bitcoin, its rate and popularity, none of the institutions are now rushing to buy "digital gold". First, it should be understood that after the quotes fell down by $30,000, many investors (small or large) suffered losses. Secondly, when the upward trends in bitcoin end, they end for a long time, so it is unlikely that a recovery of the "bullish" trend can be expected in the near future. Thirdly, the fundamental background now is such that it is time to continue selling bitcoin, and not to think about new investments in it. All these factors speak in favor of the fact that bitcoin is likely to continue its decline and in the near future may fall again to the level of $30,500. Recall that the worst scenarios that have been voiced by analysts in recent days are $24,000 for a coin and $19,000 for a bitcoin coin. And, from our point of view, these are quite real scenarios. Moreover, all market participants fear that the authorities of China and the States will very much "tighten the screws" on the cryptocurrency market, which will significantly reduce the popularity of the main cryptocurrency around the world, and all its "counterparts". In recent weeks, there have been rumors that central banks and governments of many countries of the world have declared war on bitcoin, since at the moment the entire cryptocurrency market is equal to $1.7 trillion. This is a huge amount of money that is currently not taxed, and not controlled by governments. Naturally, such a course of things, especially if the crypto market continues to grow, as many crypto experts believe, cannot suit the authorities of any large and developed country. Recall that just recently, the G7 countries decided to introduce a unified corporate tax all over the world so that large corporations would not be able to evade taxes using "tax havens" - countries where tax rates are either minimal or zero. Such countries still profit from the presence of large corporations on their territory. But large countries, such as the United States or France, do not receive huge sums of money in their treasury. The situation is the same with bitcoin. It may find refuge in third world countries or developing countries, but large and developed countries will fight against it. At least, this is where everything is going now. Thus, we believe that the outlook for bitcoin is deteriorating day by day and it is far from the fact that we will see a new upward trend.

Technically, bitcoin's fuse continues to fade, and the cryptocurrency itself is trading very sluggishly. At this time, investors are in no hurry to buy bitcoins again, and miners get rid of the mined coins. The fundamental background remains unfavorable, so we believe that digital gold has more chances to return to the $30,500 level than to grow. If bitcoin quotes manage to gain a foothold above the 38.2% Fibonacci level - $41,000, then this will slightly increase the likelihood of further growth in digital gold, but traders still need to get to this level.