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14.06.202112:17 Forex Analysis & Reviews: The pressure on bitcoin persists. Bitcoin may fall down again one of these days

Exchange Rates 14.06.2021 analysis

In the last two months, the fundamental background for the entire cryptocurrency market remains extremely negative. Of course, traders always have the "Elon Musk factor" at their disposal, which from time to time also supports the first cryptocurrency, but recently, much more negative news has come. Earlier, it was reported that the Chinese authorities may prohibit the mining of cryptocurrencies on their territory. The authorities of some regions of the PRC have already banned mining (Inner Mongolia, Qinghai, and Sichuan). Now, the authorities of the Chinese region of Yunnan are also going to stop mining cryptocurrencies on their territory. Companies that locate their mining equipment in the districts listed above are looking to move it to North American countries. However, it is not only in China that they propose to fight bitcoin, as well as to prevent the use of non-renewable energy sources in the extraction of bitcoin. The Netherlands also proposes to completely ban cryptocurrencies, as announced by the director of the Bureau of Economic Analysis, Peter Hasekamp. In his opinion, there is a whole list of reasons why bitcoin cannot be legal. Cryptocurrency, according to Hasekamp, does not have any feature and property of money and has no intrinsic value. Hasekamp noted that bitcoin is often used to finance various criminal operations and criminals, as well as various frauds very often occur with it. The director also noted that bitcoin is practically not used to conduct "ordinary" transactions and to pay for goods and services. He stated that the collapse of the cryptocurrency market is inevitable and urged the Dutch authorities to make it as difficult as possible for Dutch citizens to access cryptocurrencies as quickly as possible. Thus, recently (in 2021), Bitcoin is really starting to face resistance from central banks and the authorities of many countries. Theoretically, bitcoin can be banned by all countries of the world, which will bury the entire cryptocurrency market. However, there will most likely be a clear gradation of bitcoin-friendly and hostile countries. Most likely, countries like El Salvador will benefit from the legalization of bitcoin, since their economies are so weak that every chance should be used to facilitate the movement of capital into their territory. For countries like the United States or China, bitcoin poses a threat to the financial system, as it and other cryptocurrencies are used to evade taxes.

Exchange Rates 14.06.2021 analysis

Technically, on the 4-hour timeframe, bitcoin quotes moved away from the $30,500 level and even consolidated above the $38,467 resistance level. Thus, the upward movement may continue with the target of the resistance level of $43,852. However, it is quite possible that from the current positions, a new fall will begin, since it was near the current levels of value that the growth stopped in the last two times, which is clearly seen in the illustration.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Paolo Greco,
Analytical expert
InstaForex Group © 2007-2021
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