Bitcoin is further above $56,361. However, it tends to fall again.
On Thursday, December 2, bitcoin declined slightly again and is about to make another successful attempt to break $56,361. Bitcoin has been inevitably decreasing for the last three days. Notably, the cryptocurrency has a small upside potential. According to the current wave layout, a corrective wave b should be formed. It may turn out to be short, though even this one is missing at the moment. Recent cryptocurrency reports were quite contradictory. On the one hand, one of the most significant factors for any cryptocurrency, demand for it, is further rising. Glassnode's data confirm the fact that long-term investors are still holding coins in their crypto wallets. Besides, if coins are not selling out, then demand is not falling and supply is not increasing. However, there are about 13.5 million coins in crypto wallets of long-term investors according to some data, and about 80% coins according to others. Notably, the notion of "long-term holdings" is defined by the time coins are held on their balance sheet. More than half a year is a long-term hold, 179 days is a short-term hold. Thus, the difference between them is only a day. If even the remaining 20% of investors start to get rid of their coins, the remaining investors will have to buy them back to keep the rate from declining. So far bitcoin tends to fall, i.e. there are more sellers in the market.
SEC head Gary Gensler considers bitcoin to be a threat to the banking system.
Meanwhile, the bad US news arrived. US Securities and Exchange Commission Chair, Gary Gensler, said that bitcoin is a rival for the US banking system and his agency does not back such competition. According to Gensler, about 40 years ago, the US banking system was completely overhauled to combat money laundering and various threats to national stability and the stability of the financial system. However, bitcoin is an alternative system that could undermine the principles grounded in the functionality of the banking system. Earlier, Mr. Gensler noted that the SEC was not going to ban cryptocurrencies following China's example. However, in the US rumours have long been flying about tightening tax laws for cryptocurrency transactions, as well as regulation of cryptocurrency circulation and digital assets. All this news is bad for bitcoin, which has been declining in recent weeks amid a greater likelihood of tightening monetary policy by the Federal Reserve. However, trader Nicolas Merten is optimistic and believes that bitcoin will be falling for some months, then it will further rise and will reach $200,000 next year.
The current uptrend section is still undeniable. The wave picture was specified after the instrument made a successful attempt to break the high of the anticipated wave 3. Now the whole picture looks like a completed impulsive five wave uptrend section, which started to form on July 20. The rebound of the quotes from the reached highs during the last three weeks might indicate the completion of the expected wave 5. In this case, it turned out to be a short one. Currently, this option is more evident. There is no alternative option at the moment as the instrument is not trying to resume the formation of the ascending part of the trend. This option is possible. However, if to take into account only the wave layout, then at least a three-wave descending trend part should be formed now with the targets near $51,200 and $46,900. In the near future, the construction of corrective wave b may start, after which the decline of the instrument will resume with the designated targets.
