Bitcoin continues to fall in price, but the support of $44,000 continues to maintain the growth prospects of the cryptocurrency
It is good when news comes every day or two that can move the cryptocurrency market. Elon Musk posted on Twitter about bitcoin – plus $5,000, Tesla bought bitcoins – plus $5,000, MicroStrategy raised a couple of billion to invest in bitcoin – plus another couple of thousand dollars to the cost. And when there is no news, there is no new hype and bitcoin quotes begin to slowly fall. Of course, it does not indicate that this is the beginning of the end. On the other hand, it is very similar to this. The quotes of bitcoin sank by $14,000 and have yet to find the strength to resume the upward trend. There are no reports that any other large companies are going to invest in the cryptocurrency. Elon Musk is silent, Tesla produces electric cars, and does not buy crypto assets. Therefore, traders and investors are deprived of new information that could provoke a new increase in demand for bitcoin. But in recent days, information has been received that bitcoin is being sold by large investors. Not all in a row, but only some, but the bell for bitcoin is bad. Cryptocurrency exchange Coinbase generally believes that the alleged creator of bitcoin Satoshi Nakamoto should remain in the shadows and not enter the market. In 2017, the collapse of the bitcoin quotes occurred presumably after 1.1million bitcoins were moved, which presumably belonged to the creator of the cryptocurrency. Back then, the exchange rate was also at absolute highs of about $20,000 per coin. Thus, considering that there can be no more than 21 million coins in total, of which about 2 million coins have not been mined, and more than 15 million coins are lying on the wallets of their owners without movement, only 3 or 4 million participate in the auction. Accordingly, a sharp sale of several thousand or tens of thousands of coins can lead to a collapse of the bitcoin exchange rate. Just recently, two transactions were recorded on one of the exchanges for the sale of several tens of thousands of bitcoin coins. It is possible that these transactions provoked the fall of the cryptocurrency. In general, we continue to hold the view that bitcoin can fall down almost at any time. So, when working with this tool, it is necessary to never forget about Stop Loss, otherwise one fine morning you may wake up and see an empty account. Since bitcoin is a highly volatile instrument, many institutional investors and large banks do not want to deal with it. It can be said that the probability of a new drop in bitcoin is much higher than a new growth. It should also be noted that other cryptocurrencies are falling in price. For example, ether fell in value from $2,000 per coin to $1,300, and litecoin – from $241 to $160.
The material has been provided by InstaForex Company – www.instaforex.com