18.06.202109:14 Forex Analysis & Reviews: Bitcoin bounced off the $40,700 mark and continues to fall

Bitcoin continued to decline yesterday after it failed to overcome the $40,700 mark, which is the upper border of the sideways channel. Thus, at the moment, the downward movement forecast to the level of $30,500 is fully fulfilled. Also, note that bitcoin quotes have consolidated below the short-term upward trend line on the 4-hour time frame, which also increases the chances of a continuation of the downward movement.

Over the past day, traders have not received any important and positive information. Crypto billionaires and investors continue to sing praise about Bitcoin, listing its advantages, even those that it never possessed, and declaring that Bitcoin will break value records again in 2021. However, we have already repeatedly talked about how to relate to this kind of forecast. In fact, Bitcoin has moved to the formation of a downward trend, which may take several years. It also cannot be said that Bitcoin has completely completed the process of consolidation and correction after soaring to the level of $65,000. Well, the general fundamental background, from our point of view, remains negative.

The most astute crypto experts also expect the bitcoin to drop to $19,000 - $24,000 per coin and say that investors are now afraid of a new portion of negativity from the Chinese or U.S. authorities. Recall that the process of tightening the cryptocurrency sphere has already begun in China, where 4 regions have completely banned mining. Most likely, this process will continue. In the United States, everyone is waiting for the adoption of new legislation that will oblige all cryptocurrency exchanges and other companies engaged in bitcoin to transfer information about all transactions over $10,000 to the U.S. Internal Revenue Service. Considering the fact that the bitcoin coin costs $38,000 even after the fall, most of the transactions will fall under such a requirement. Of course, investors are not stupid either, and many of them will now try to split their transactions into payments of less than $10,000. However, the very fact that the U.S. authorities have taken up the cryptocurrency market is important here, which means that the tightening of regulation can now be permanent, and not one-time.

In general, all this negative is not yet covered by Elon Musk's "new love" for bitcoin, whose Tesla can resume sales of electric cars for cryptocurrency, as well as the decision of the authorities of El Salvador to allow the use of bitcoin as a means of payment, along with the U.S. dollar. The other day, the World Bank said that it refused to help the authorities of El Salvador in the transition to bitcoin. According to the Bank's representatives, the use of cryptocurrency at the state level is not a solution that the organization supports. Bitcoin is too unstable, too volatile, not transparent enough, and absolutely unecological, so the World Bank is not going to help anyone with its introduction into the financial system.

Technically, bitcoin failed to overcome the $40,000 ($ 40,700) mark and began to decline. On the 24-hour time frame, it is clearly visible that the cryptocurrency can be located inside the side channel. Therefore, in the coming days, there may be a movement to its lower border. On the other hand, overcoming the $40,700 mark will allow investors to breathe more freely and continue buying bitcoin, which can lead it to the levels of $43,852 and $47,070.