17.06.202108:55 Forex Analysis & Reviews: Bitcoin bounced off the level of $40,700

Yesterday, the first cryptocurrency in the world failed to continue its growth that has been observed in recent weeks. The price spent more than a day near the $40,700 level, but was never able to overcome this level. We talked about it yesterday, calling it quite important. Thus, at this time the market has turned down. However, at the current moment, the quotes have also hit the 23.6% Fibonacci level on the daily timeframe, as well as the Kijun-sen line and the upward trend line on the 4-hour timeframe. This suggests that a rebound from these supports is possible. Thus, the further fall of bitcoin, which may be now in the side channel of $31,000 - $41,000, depends on these supports. In case of overcoming them, the fall in quotes will continue. Under the current circumstances, Bitcoin would be greatly helped by the fundamental background. Several or even one positive news could help investors push through the $40,700 level. However, the problem is precisely that there is no positive news for bitcoin right now. And the news that appeared a few weeks ago continues to speak in favor of a new drop in bitcoin quotes, just because there is no other important news right now. Of the really important news of recent days, we can only note the desire of MicroStrategy to buy "digital gold" for another $1 billion. According to many experts, the company has been playing with fire for a long time. Many have no doubt that Bitcoin will continue to rise in price in the long term, but cryptocurrencies are highly dependent on the actions of governments and central banks. And in recent months, there has been a tendency to tighten regulation of the cryptocurrency sphere. Recall that in China, mining has already been banned in 4 provinces, and in the United States in the coming weeks they may adopt a budget for the 2022 fiscal year and amendments to tax legislation that will relate specifically to the cryptocurrency sphere. Thus, potentially bad news awaits Bitcoin in the near future. Returning to MicroStrategy, many experts also believe that buying bitcoins is not only an attempt to make money on a highly profitable and high-risk instrument. Thanks to investments in bitcoin, the company became known all over the world, and its shares rose several times. However, there is a downside to the coin, as the value of the company's shares is now highly dependent on the cryptocurrency market. And, as we said, cryptocurrencies are not like the stocks of Apple or Microsoft, which are almost guaranteed to grow in the long term, because they are backed by real assets, developments, technologies, and so on. Bitcoin is not even gold, since it has no value of its own and no benefit of its own. The price of bitcoin continues to depend only on market sentiment and its belief in future growth.

Technically, bitcoin failed to overcome the $40,000 ($40,700) level and began to decline. On the daily timeframe, you can clearly see that the cryptocurrency can be inside the side channel. Consequently, it is possible that in the coming days there will be a movement towards its lower border. On the other hand, overcoming the level of $40,700 will allow investors to breathe more freely and continue buying bitcoin, which may lead it to the levels of $43,852 and $47,070.