13.07.202107:40 Forex Analysis & Reviews: Bitcoin is expected to fall to $10,000

Exchange Rates 13.07.2021 analysis

The situation of Bitcoin has not changed at all for the last few days. Its quotes continue to remain in a very narrow price range, approximately between the levels of $ 32,000 and $ 36,000. Such a channel is very narrow for the leading digital currency. The same can be said about the volatility of this cryptocurrency in the last few weeks. The price changes on average by 1.5-2 thousand dollars per day, which is very small again for bitcoin. Thus, we have all the signs of a flat. A flat is the reluctance of investors to actively trade at this time. Roughly speaking, this means that supply and demand do not change, so the price does not move practically from the spot. It is noteworthy that some crypto experts continue to say that that bullish traders continue to increase purchases. Perhaps, this is the case, but only the second half of the experts believe that Bitcoin will collapse to the level of $ 10,000 soon.

It can be recalled that it was predicted that Bitcoin's quotes would decline at least in the area of $ 19,000 - $ 24,000. In principle, we continue to expect exactly this development of events. We remind traders that listening to cryptocurrency experts is a small task, simply because it should be clearly understood why this or that expert or investor gives this or that forecast for Bitcoin. We have repeatedly drawn the attention of traders to the fact that when an investor who owns decent amounts of Bitcoin (or presumably owns) predicts the price of Bitcoin in 2021 at $ 100,000, then such a forecast is unconvincing. It is clear that this investor wants his assets to continue to grow, and for that, new flows of investments and investors are required in the bitcoin network. Due to such ambitious forecasts and promises of a bright future, many investors are trying to increase the value of their own crypto assets. The same applies to many experts who are closely related to the crypto industry and work, for example, on the exchange. The same mechanism works here. It is very beneficial for these people that investors and traders conduct as many transactions as possible, buy and sell cryptocurrencies as actively as possible, and so on. Therefore, they also provoke public interest with unrealistic forecasts. However, experts who predict a new decline in bitcoin should be listened to, since they hardly have any personal interest.

In any case, it is foolish to expect a new one to start immediately after the completion of the upward trend. It can be recalled that in all cases earlier, Bitcoin lost 80-90% of its value after the bullish trend is over. We see no reason why this time will be different. Moreover, the fundamental background for the entire cryptocurrency market remains extremely negative, and Bitcoin continues to drag most other cryptocurrencies down with it. As a result, sellers may try to break through the levels of $ 31,100 and $ 29,700 again in the near future.

Exchange Rates 13.07.2021 analysis

Technically, Bitcoin has declined to the support level of $ 31,100 five times already. Therefore, Bitcoin can theoretically continue a new round of movement to the upper border of the side channel, that is, to the level of $ 40,700. However, it continues to be inclined downwards and may return to the level of $ 31,100 in the near future. In order for Bitcoin to further fall, it should break through the levels of $ 31,100 and $ 29,700. From our point of view, it's just a matter of time.

*Analiza tržišta koja se ovde nalazi namenjena je boljem razumevanju tržišta i ne pruža instrukcije za vršenje trgovanja.

Paolo Greco,
Analytical expert of InstaForex
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