Bitcoin declined for the sixth time to the level of $ 40,746, rebounded from it again, and is now returning to the downward trend line and the upper border of the Ichimoku cloud. We draw the attention of traders to the fact that each subsequent pullback from the level of $ 40,746 is less than the previous one. So from our point of view, the probability of the final breakdown of the $40,746 level is still very high. However, a rebound from the level of $43,852 and the Senkou Span B line on the four-hour timeframe is very likely as well. Therefore, we are not waiting for Bitcoin to plunge, but for a trading signal in the form of a breakdown of either the trend line or the $40,746 level.
On another note, JP Morgan's CEO Jamie Dimon said that he allows Bitcoin to grow 10 times, but this is absolutely not a reason to buy it. According to him, Bitcoin will come under the complete control of governments sooner or later, limiting its growth and use.
"I am not interested in Bitcoin. People spend too much time and energy on it. I don't know whether governments will destroy the first cryptocurrency. The authorities will control it in any case, but this does not mean that bitcoin's price will not be able to rise tenfold in the next five years. But if you invest borrowed money, then you are a complete fool. Speculation occurs in all markets, even in communist countries," - JP Morgan's CEO said.
From our point of view, Jamie's forecast is very important and accurate, since it is he who identifies what can happen with Bitcoin. Most cryptocurrency experts and other so-called ones simply name the figure, saying, for example, Bitcoin's price will cost $ 100,000. They are not considering any fundamental factors, while on the other hand, Dimon correctly says that Bitcoin can grow 10 times over the next 5 years, but at the same time, warns people to be cautious in investing in it since the risks are very high especially if the governments of many countries will continue to impose restrictions on the cryptocurrency sphere.
There is still a downward trend in the four-hour timeframe. Bitcoin declined to the support level of $ 40,746 six 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