17.07.202117:31 Forex Analysis & Reviews: Bitcoin continues to roll down

The quotes of the main cryptocurrency continued to decline steadily and reached the first "dangerous" level of $ 31,100 on Friday. For the third day in a row, bitcoin is trading near this mark, which has worked for the sixth time in the last two months. However, let us pay attention to how the nature of bitcoin's movement has changed over the past few weeks. We continue to stand by our opinion: bitcoin will continue to become cheaper in the coming year. Of course, many "crypto experts" continue to voice crazy forecasts for the cost of bitcoin in 2021, assuring that the current recession is a temporary phenomenon. The "bullish" trend is over, the fundamental background remains sharply negative, and most real experts are confident that the first cryptocurrency will fall into the range of $ 10,000 - $ 24,000. The spread of the range is relatively high because many experts call different goals for the fall of bitcoin. However, the fact that there is a goal of $ 24,000 per coin does not completely negate the forecast of $ 10,000 per coin. The same opinion is shared by the CEO of the investment company DoubleLine, Jeffrey Gundlach. In his interview with CNBC, he said that he sees a classic figure of technical analysis on the bitcoin chart. It suggests that bitcoin will continue to fall, at least to the level of $ 23,000. Earlier, a similar forecast was given by JPMorgan analysts, who believe that BTC may fall to $ 25,000. At the same time, JPMorgan considers that the reason for the further fall will not be technical but fundamental.

This month, the units of the Grayscale Bitcoin Trust bitcoin fund will be unblocked after a six-month lock. The peculiarity of these shares is that their owners must keep them on their hands for a certain period without having the right to sell. According to the BYBT service, about 40 thousand bitcoin coins will be unlocked, estimated at $ 1.4 billion. Potentially, these coins (or most of them) can immediately go to cryptocurrency exchanges for sale. Over the past few months, the bitcoin exchange rate has fallen in price by more than two times, and investors of Grayscale Bitcoin Trust did not have the opportunity to sell shares when the price was beginning to fall. However, they are highly likely to want to do it now. And, of course, do not forget that China has almost completely got rid of mining companies, which also does not improve the fundamental background. And in addition, the entire crypto community is waiting for news from the United States, where the legislation controlling the turnover of cryptocurrencies may be tightened.

In technical terms, bitcoin fell to the level of $ 31,100 for the sixth time. Thus, the cryptocurrency has already begun to test the strength of $ 31,100, and it may start to try $ 29,700 in the near future. From our point of view, a new drop in bitcoin is only a matter of time. However, as long as these obstacles are not passed, "digital gold" retains purely theoretical chances of growth to the level of $ 40,700. However, this also requires the desire of investors to buy bitcoin, which is not yet observed.