20.07.202118:58 Forex Analysis & Reviews: Bitcoin will still return to its peaks

Bitcoin resumed its decline and fell below the $30,000 level. Thus, at the moment, the most negative scenarios are being realized. In the short term, the main cryptocurrency continues to decline and is likely to continue to decline. The news background is too weak. It simply does not support the main cryptocurrency, and investors continue to sell their coins, not expecting strong growth in the near future. However, analysts believe that the current period of bitcoin's fall, no matter how prolonged it may be, is temporary. And upon its completion, the cryptocurrency will again rush to its peak values and easily update them. Several facts speak in favor of this scenario. First, the cryptocurrency has previously adjusted quite significantly after the ascending sections of the trend. Sometimes the corrections took several years. However, invariably after each correction, a new upward trend section followed.

Secondly, the current decline of bitcoin is largely due to the repression of miners in China. However, miners in China will not throw away all their equipment. They are being relocated to other countries. The process of moving from one country to another, and even with serious and cumbersome equipment, is not fast. Therefore, mining can remain at its minimum values for six months or a year for some time. However, sooner or later it will start to recover. Thirdly, another "halving" will take place in 2024. That is, the remuneration to miners for one extracted block will be reduced by half. Usually, on the eve of each "halving", a new upward section of the trend began. Analysts are also convinced that even a loss of up to 80% of the value of bitcoin will not mean the end of the upward trend. In their opinion, this is not new for bitcoin. Thus, even a decline below $20,000 will not mean the end of the upward trend. From my point of view, this is a very controversial statement, since the upward trend has already been completed. Nevertheless, experts probably mean that it is not particularly difficult for bitcoin to restore its value to the peak values of 2021. There is also an opinion that as long as the decline in quotes persists, investors do not waste time in vain and continue to buy coins.

The decline in the bitcoin exchange rate continues because supply exceeds demand. Nevertheless, many investors continue to believe that bitcoin can grow to $100,000 per coin and even more. Accordingly, now there are very attractive prices for buying it. Faith is what bitcoin is lacking right now. The belief of the entire cryptocurrency market that it can become more expensive again. Analysts also agree that it will be possible to talk seriously about a downward trend if bitcoin does not begin to recover its losses until mid-autumn. Thus, the long-term forecast looks like this: bitcoin can decline up to the $10,000 mark, but most market participants are confident that the new upward trend will be stronger than the previous one. So, the main thing is to buy bitcoin as profitably as possible in times of low prices. That is, as cheap as possible. Forecasts for 2022-2025 say that bitcoin can conquer the $300,000 mark. The latest opinion poll of top managers of the cryptocurrency sphere shows that more than half hold the opinion about the explosive growth of bitcoin in the next 3-4 years. However, just under half of the respondents believe that bitcoin will never become the main currency of the world and the defining link of the global financial system.