10.09.202108:20 Forex Analysis & Reviews: Stefan Ingves: Bitcoin's collapse is inevitable without government support

Bitcoin cannot restore the upward trend yet after declining to the support level of $ 43,852. The quotes returned to the level of $ 46,600, but they failed to consolidate above it on the first attempt. Thus, the corrective scenario remains in effect. If there is a consolidation above the level of $ 46,600 in the upcoming days, then we can expect the digital asset to rise to the level of $ 51,350. Meanwhile, participants in the cryptocurrency market continue to think about what to do next. As usual, the opinions of experts are divided into two options. First, Bitcoin is expected to complete the upward trend and continue to correct up to the $ 30,000 level. Second, the upward movement will be resumed, and the cryptocurrency will rise in the range of $ 75-100 thousand per coin by the end of the year. Both groups argue that they are right, but there is still no consensus. From our point of view, the events that led to Bitcoin's decline by $10,000 in El Salvador were just a starting point. As mentioned previously, the entire last section of the $20,000 growth looks very unreasonable. It is clear that this cryptocurrency may become more expensive or cheaper not necessarily on the basis of any fundamental reasons. However, they still exist in most cases, although not always obvious. The fact that its quotes declined immediately by $ 10,000 indicates that there was a sharp reduction in long positions. Therefore, market participants currently need new reasons to buy Bitcoin.

At the same time, the Governor of Sweden's central bank, Stefan Ingves, said that Bitcoin is destined to die without support from governments. He likened buying and selling cryptocurrency to postage stamps, saying that investors of digital gold who want to get rich might as well buy postage stamps.

"Private assets usually collapse sooner or later. Of course, you can get rich trading bitcoins, but that is the same as trading stamps," Ingves said.

It can be recalled that Bitcoin was criticized by representatives of other central banks and prominent politicians. For example, the ECB and the Bank of England have repeatedly warned investors that in cryptocurrency trading, they must be prepared to lose all or most of the funds invested. The People's Bank of China banned mining altogether, and also called cryptocurrency trading "speculation".

However, well-known analyst John Bollinger, the creator of the technical analysis indicator of the same name, believes that Bitcoin has already returned to the "bullish" trend after the collapse of $ 10,000. "The bullish trend for the BTC/USD pair has been restored. Good level of risk and reward," he tweeted.

At the same time, the Panamanian authorities submitted a bill according to which bitcoin can become a legal tender in the country by analogy with El Salvador. The law entitled "The law on cryptocurrencies: ensuring the compatibility of Panama with the digital economy, blockchain, crypto assets and the Internet" was presented by one of the parliamentarians of Panama, who is confident that this innovation will create new jobs in the country and attract investment. Are we waiting for another collapse of $ 10,000?

On the four-hour timeframe, it is clearly visible that the quotes of Bitcoin collapsed, as a result of which the price consolidated below the level of $ 46,600, and below the ascending channel. In this case, we expect a further decline to the level of $ 43 852 in the near future. As mentioned earlier, the last round of Bitcoin's growth seems groundless, so the asset's correction will at least not hurt. A consolidation above the level of $ 46,600 can provoke new growth with a target of $ 51,350.