18.05.202115:14 Forex Analysis & Reviews: Elon Musk: "Bitcoin is highly centralized"

The bitcoin exchange rate has collapsed to $43,000-$44,000 and is in no hurry to start a new round of upward movement. In this morning's article, we said that at this time, the option of continuing the correction does not look as likely as it did a week ago. The reason is that the quotes have fallen to the important support level of $43,852, and for the quotes to continue falling, the price mustn't overcome this level. Thus, everything now depends on it. The correction itself, which began in mid-April, looks quite convincing, so we can assume that the upward trend will resume soon. However, recall that the trend for bitcoin has been maintained for more than a year, and previously any upward trend was relatively short-term in the long term. A year and a half at most. Thus, from this point of view, bitcoin quotes will continue their way down. The fundamental backdrop for bitcoin remains extremely unattractive.

It all started with the power outages in the Xinjiang region in China, which led to the shutdown of a huge number of mining farms. In the last few days, Elon Musk came to the fore, who with several of his tweets and statements forced many investors to get rid of bitcoin. Unfortunately, this is the reality in 2021, when one functionary, even a famous billionaire, can bring down the cryptocurrency market with one tweet. "A single coal mine in Xinjiang flooded, almost killing miners, and Bitcoin hash rate dropped 35%. Sound "decentralized" to you?" Musk wrote on Twitter. A little later, Musk said that Tesla did not sell the remaining (about 90%) bitcoin coins, which helped the rate of "digital gold" to recover a little.

However, the main thing is different: Musk continues to manipulate the market. Consciously or unconsciously, it doesn't matter. No one knows how many bitcoins Tesla actually sold. This will only be available from the company's second-quarter reports, which will not be released soon. In addition, the markets continue to react very violently to Musk's statements, as if he is the creator of the cryptocurrency and can really bury it or, on the contrary, bring it to the kings. Also one of the Twitter users wrote: "Bitcoin owners will give themselves a slap in the face next quarter when they learn that Tesla got rid of the rest of their coins. Given the amount of hate Musk is getting right now, I wouldn't blame him." Under this message, Musk himself wrote: "That's right." In general, from a fundamental point of view, we would say that bitcoin will continue to decline.

In technical terms, bitcoin continues to move downwards on the 4-hour time frame after breaking the ascending trend line. The level of $43,852 is taken, so at the moment the downward movement continues. Overcoming the level of $43,852 will further increase the probability of continuing the fall of bitcoin quotes with the target of $38,467.