17.04.202121:28 Forex Analysis & Reviews: The Central Bank of Turkey has banned cryptocurrencies. Who's next?

On Friday, the world's number one cryptocurrency began a new round of corrective movement, which may be the very beginning of the end that many traders are waiting for. We have repeatedly said that even though absolutely all technical indicators now indicate an upward trend, a serious correction for bitcoin has been brewing for a long time. Even though every day more and more investors of all calibers and stripes are showing a willingness to start working with bitcoin and other digital assets, the price for one coin is already too high. Moreover, we have already said several times that the upward trend is weakening. To understand this, you don't even need to be a specialist. In the illustration below, four local highs of value are visible, and each subsequent high was at a smaller distance from the previous one. Simply put, investors are "dragging" bitcoin up with the last of their strength. We have already said that if the inflow of bitcoin investment is constant, the cryptocurrency can grow non-stop at least up to $ 1,000,000. However, if we still consider more realistic options, now is a great time to start the correction. Moreover, the fundamental background contributes to this. From April 30, 2021, all payments in cryptocurrencies will be banned in Turkey. The Central Bank of Turkey has clarified that payment service providers will not be allowed to develop business models in which cryptocurrencies are used in payments. The bank explained that the reasons for this decision were the lack of regulation of the cryptocurrency segment, too high volatility, as well as the frequent use of crypto assets for illegal purposes. It is also reported that this ban does not yet apply to trading cryptocurrencies on exchanges. However, as they say, bitcoin is not only gaining popularity around the world but also falls out of favor with the Central Bank and governments. Recall that in India, they are also going to pass legislation that will completely ban the mining, storage, and transfer of cryptocurrencies. Central banks and governments are the main enemies of bitcoin and all its "brothers". Although many experts believe that bitcoin will no longer be banned in the United States, this does not mean that it will be impossible to ban it in the rest of the world. Central banks do not need a cryptocurrency that they cannot control. Therefore, in any case, the rules of the game with bitcoin will only get tougher around the world. Question: where is the limit?

Meanwhile, the investment company Ark Invest bought shares of the cryptocurrency exchange CoinBase for another $ 110 million. Recall that CoinBase just this week began to be listed on the NASDAQ, and various funds of Katie Wood, who is considered one of the most successful investors of the last generation, have already invested more than $ 350 million in the stock exchange. However, this news did not support the demand for bitcoin. So far, the technical picture is much more important for digital gold.

In technical terms, the most important thing now is the ascending channel. The trend is weakening, if the quotes leave the channel, that is, they are fixed below it, this will be a very powerful signal for the beginning of the correction. From our point of view, the correction may be strong, and bitcoin will sink to at least $ 44,000 per coin. The illustration shows three important support levels, which will be the targets for correction.