Bitcoin plummeted to the level of $ 40,746 for the fifth time and rebounded from it again. All this time, Bitcoin is also below the downward trend line, so the "narrowing triangle" remains relevant. And along with it, the main digital asset will move in the direction of which side of the triangle will ultimately be broken. So far, we see that there are massive pending buy orders at the level of $ 40,746, which are constantly triggered, keeping the cryptocurrency above itself. However, the miracle cannot continue permanently. We expect Bitcoin to eventually break through this level, as the latest news from China is clearly not driving the growth of the world's first cryptocurrency.
Steve Hanke, who is a Professor of Applied Economics in Johns Hopkins University, has criticized cryptocurrencies again, comparing them to the largest catastrophes of mankind – the crash of the Titanic and the death of the Hindenburg airship. Hanke called Bitcoin a speculative zero-value asset. He also did not give any explanations for his comparison, but one can guess that an economist who worked in the administration of President Ronald Reagan believes that Bitcoin will collapse sooner or later.
Meanwhile, the US Senate continues to work on tightening regulation of the cryptocurrency segment. Earlier, it was already mentioned that there will be a vote on the "infrastructure package" this week, which includes several important points for digital assets. In particular, taxation and reporting. However, Senators Maggie Hassan and Joni Ernst believe that the US Treasury Department should also study how other countries regulate the cryptocurrency sphere and report to Congress. Senators believe that the cryptocurrency should be studied as best as possible, and only then make new decisions on its regulation.
On another note, the largest commerce company Alibaba imposed a ban on the sale of Bitcoin miners. The company's official statement says that "given the instability of laws and regulations regarding cryptocurrencies and related products in various international markets, Alibaba prohibits the sale of miners in addition to banning digital assets such as Bitcoin, Litecoin, Ethereum and others."
As a result, Bitcoin's fundamental background remains impartial and it is even a little strange to see the cryptocurrency so high. Many states of the world (except for El Salvador) are following the path of toughening the circulation of bitcoin or simply prohibiting it. And it can be recalled that this cryptocurrency has managed to rise in price from $ 30,000 to $ 52,000 over the past few months, and this growth still looks groundless. Therefore, we believe that it will further decline to the level of $ 30,000. However, one should not trade without appropriate technical signals.
There is still a downward trend in the four-hour timeframe. Bitcoin declined to the support level of $ 40,746 five times and rebounded each time. Along with this, the price also failed to consolidate above the Ichimoku cloud and above the trend line. Therefore, it cannot be said that the bears are currently weak. If the trend line is broken, it is recommended to buy Bitcoin with the targets of $ 46,600 and $ 51,350. But if the level of $ 40,746 is still broken, then the decline may resume to the level of $ 31,100.The material has been provided by InstaForex Company - www.instaforex.com