Bitcoin continues its recovery after declining to the level of $ 40,746. Two rebounds from this level triggered another growth of the main cryptocurrency, but at this time, the descending trend line also remains relevant, which indicates that the quotes will most likely fall. It should also be noted that bitcoin is located below the Ichimoku cloud in the H4 time frame, which also testifies that the downward trend is still not over. In this case, we expect the price to return to the level of $ 40,746 and, possibly, break through it in the near future.
Meanwhile, JPMorgan, which is one of the largest banks in the world, published a report according to which institutional investors are investing more in Ether and less often in Bitcoin. This is proven by the data on futures on the Chicago Mercantile Exchange. These data indicate that purchases of Ether futures are rising, while the number of Bitcoin futures is decreasing. Experts believe that Ethereum's growth is associated with the development of DeFi and NFT areas, while Bitcoin is more static in terms of the development of new directions. The fact that the project itself is constantly developing and attracting new investors also speaks in favor of the growth of ether. It also plays a role that Ethereum is less bitten by large trading volumes and a high price. Bitcoin has long been very expensive, which scares off many investors who are unable to buy even 1 bitcoin coin. At the same time, ETH is much cheaper and has a much higher growth potential, which means it is able to bring more profit than investing in BTC. Therefore, most experts are inclined to believe that both major cryptocurrencies will continue to become more expensive in the long term, both are important and necessary, but at the same time, Ethereum can show higher growth rates than Bitcoin.
At the same time, the Chairman of SkyBridge Capital, Anthony Scaramucci, said that Bitcoin will become the world's reserve currency sooner or later. Scaramucci urged everyone to study the crypto industry, even if they are not interested in Bitcoin and are skeptical about it. According to Scaramucci, Bitcoin is now really very volatile, but Amazon shares showed the same volatility 24 years ago. In addition, investing $ 10,000 in shares of this company at the IPO brought 21 million in income now. Therefore, Scaramucci said that everyone should clearly understand what Bitcoin is. This cryptocurrency is now a decentralized currency that operates under the rule of people, not central banks or governments. The head of SkyBridge Capital also advised everyone to invest about 5% of their portfolio in bitcoin.
It can be seen that opinions regarding the further movement of the bitcoin cryptocurrency differ. In the short term, a new collapse is absolutely not excluded. It is also possible that there will be a serious drop in Bitcoin's demand over the next 9 months, during which the Fed intends to completely complete the QE programs. From our point of view, Bitcoin will not be able to update its absolute highs in the coming year.
On the four-hour time frame, a downward trend is clearly seen. Bitcoin declined to the support level of $ 40,746 and broke through it even twice, but rebounded from it eventually. However, it can be recalled that the level of $ 43,852 was also broken on the third attempt, so nothing prevents Bitcoin from returning to the level of $ 40,746 again to break through it also on the third attempt. As long as the price is below the trend line, the downward trend remains.The material has been provided by InstaForex Company - www.instaforex.com