Bitcoin has finished the downward scenario considered last Friday, however, no one expected it to collapse immediately. Time is a factor that is almost impossible to predict in the market. Therefore, it is not surprising.

The reason for Bitcoin's collapse over the weekend was due to completely different factors. There is a rumor that the US Treasury intends to bring charges of money laundering with the help of cryptocurrencies to some financial companies. However, it has not been tested and could hardly be the reason for the decline. Another hypothetical reason could be a drop in the Bitcoin hashing rate, since there was a power outage in China.

But, the point is most likely different. There has been too much gossip about listing Coinbase during the previous week. The excitement and optimism pushed Bitcoin's price up, and the shares themselves began to trade above the established price.

Experts call this situation "foam on the market", but it must settle down sooner or later. The hype subsided and the sale of facts began. At least, the market was ready for this and the correction is now quite natural.

The question is how long it will last and how low the price of Bitcoin will plummet? Here, we will continue to be guided by technical analysis.

On different exchanges, the price of the BTC/USD pair dropped by an average of 14%, falling to $ 50-52 thousand per coin. After that, its quotes managed to return to the 57000 mark. This is the end of the recovery.

Analyzing the H4 time frame, the strength of the 100 level on Fibo Expansion (55760.58) is now a big question. The nearest support levels are located at 53980.47 (blue dotted line) and 51997.32 (61.8 on Fibo Expansion). Around these levels, the price can stop and make an upturn.

Therefore, as long as the price of $ 50,000 per coin is not broken and the price has not settled below this level, Bitcoin has a chance to recover. The next target for a deeper correction will be the price of $ 45,000 per BTC.

Let's take a look at another direct contributor to the recent hype, namely Coinbase Stock (COIN). After the placement, they have not yet dropped below $ 310. Now, their price is consolidating in a narrow range, which may be an indication of the next impulse, but it is not yet a fact that it will be directed upwards.

Meanwhile, HSBC does not allow its customers to buy Coinbase shares. The bank UBS notes that, although some large investors are tempted by cryptocurrencies, investing in them is still a gamble.

In turn, Morgan Stanley and Goldman Sachs are optimistic about the future of the cryptocurrency. They are ready to provide clients with the opportunity to invest in digital assets, realizing that big changes are coming in the way money flows globally.