Bitcoin has returned to the important level of $40,700 and is preparing a new collapse!


It has already been mentioned earlier that it is possible for bitcoin to return to the level of $42,300, but it will still resume falling in the future. Thus, at this time, especially on the 4-hour timeframe, bitcoin is moving just perfectly. The quotes failed to overcome the Ichimoku cloud, and the rebound from the important Senkou Span B line provoked a round of upward movement of cryptocurrencies. At the moment, the price has reached the level of $40,700, which we have already mentioned more than once. It is quite possible that a rebound will occur from this level. We believe that the correction scenario will resume in any case. Of course, you always need to have a backup option in stock. If the price overcomes the level of $40,700, then it will be possible to count on continued growth with a target of $43,852. But even if bitcoin quotes get to this level, it still won't change anything. In general, we recommend considering the correction scenario with a return to the level of $29,700 as the main one, but you should also pay attention to the buy signals that can be formed.

Meanwhile, the head of MicroStrategy, Michael Saylor, is already giving interviews almost every day, just like Donald Trump once did. This time, Saylor said that his companies are not going to sell a single bitcoin coin, even if its price continues to fall. According to the financial statements, the last drop in the BTC exchange rate led to serious losses for the company. However, Saylor still insists that all bitcoin coins should be saved, and if possible, buy new ones as well. Thus, nothing changes in MicroStrategy's strategy.

In the United States, Senator Pat Toomey said that the project of taxation of cryptocurrencies in the new "infrastructure" package of the US Congress is not feasible. He drew attention to the too vague definition of "broker", under which almost all participants of the cryptocurrency market fall, even miners. However, in reality, most of the market participants should not fall under the scope of this law, the purpose of which will be to attract additional funds just to finance the "infrastructure" package. In general, while the implementation of this bill is being postponed, the cryptocurrency market, as they say, has exhaled a little. It is no secret that any news about a possible tightening of legislation related to digital assets and their circulation causes a drop in the bitcoin exchange rate. However, yesterday, it was just the opposite. The news that the bill will not be adopted yet and will most likely be reworked, gave optimism to bitcoin buyers and he returned to the level of $40,700.


Technically, bitcoin has just perfectly worked out the Senkou Span B line on the 4-hour timeframe, bounced off it and now has grown to the Senkou Span A line, that is, to the upper border of the Ichimoku cloud, and at the same time to the level of $40,700. Thus, it is possible for the price to rebound from these resistances with a resumption of the fall with a target of $29,700. However, if the level of $40,700 is overcome, then bitcoin will be able to continue growing with the targets of $42,300 and $43,852. In this case, we recommend careful purchases.

The material has been provided by InstaForex Company -

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