07.06.2023 04:19 AM
Bitcoin has reached a local low and continues to move towards its target

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Before we could even mention that Bitcoin would continue to correct, it collapsed. Previously, the cryptocurrency entered a corrective phase and fell towards a critical line on the 24-hour chart, from which it rebounded and maintained a downtrend. Thus, the corrective target is still $25,211. And there is just a little more to go before it reaches this target, as Bitcoin depreciated by $1,500 in just a single day...

We will discuss the reasons for the decline later, although, from our point of view, a decline within a descending correction should not come as a surprise. As we have repeatedly stated, any instrument can move in either direction without any specific fundamental reasons. Now that Bitcoin has almost reached $25,211, it is worth discussing if it can cross the ascending trendline. Why is it actually impossible? Because many crypto experts continue to speak about $100,000? We have said many times that this figure has no specific basis, and some crypto traders believe that Bitcoin can rise up to $500,000.

If you can afford to buy Bitcoin now and sell it in 10-15 years, then perhaps you will indeed make a significant profit. However, such investors are called big or institutional investors, and they are unlikely to be reading this. Most ordinary traders are interested in how much Bitcoin will cost in a month or in six months, not in 15 years. And before the hypothetical rally to the infamous $100,000 can potentially start, Bitcoin can fall back to $10,000-15,000 five more times. Moreover, as practice shows, news can come in many forms. Why don't all proponents of Bitcoin growth talk about negative trends in the market or consider the possibility of a crash similar to FTX, but on a different exchange, for example? In the near future, Bitcoin is quite capable of dropping to the $24,350 level, near which the ascending trendline is located. The subsequent course of events will depend on whether this price area, line, support is breached or not.

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On the 24-hour chart, Bitcoin has made several unsuccessful attempts to break the $29,750 level. As a result, the cryptocurrency continues its downward correction. In the near future, we expect a decline towards the $25,211 and $24,350 levels, which are not far away. Bitcoin can still fall further. You may consider buying when a corresponding signal is formed, such as a rebound from $25,211, $24,350, or the trendline. The descending channel on the 4-hour chart also holds significant importance.

Paolo Greco,
Analytical expert of InstaForex
© 2007-2023
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