Bitcoin bounced off the levels of $29,700 and $31,100, therefore, from a technical point of view, a new round of upward movement has now begun with the target of the level of $40,700. But in the last month, the view that the new fall of bitcoin is just a matter of time has not left. The thing is that the fundamental background for the first cryptocurrency in the world remains extremely weak. And this is noted by many experts and analysts. For example, analysts of the investment bank JPMorgan said that they expect a new drop in quotes to the level of $25,000 per coin. They note that the general background for bitcoin remains "bearish", and as the reason for a possible new fall, they call the possible sale of shares of the Grayscale Bitcoin Trust after 6 months of blocking expires. "Despite this week's correction we are reluctant to abandon our negative outlook for Bitcoin and crypto markets more generally... Despite some improvement, our signals remain overall bearish." the bank said in a statement. According to JPMorgan estimates, the real value of bitcoin today is $23-25 thousand. Louis Navellier, managing director of Navellier & Associates, also voiced his negative forecast. He said that he found several technical patterns on the bitcoin exchange rate chart that indicate that bitcoin will fall below $10,000. He also noted that most people who invest in bitcoin are guided by only one reason: bitcoin is just constantly growing. However, as practice shows, it is not constantly growing, and after periods of strong growth it goes into a stage of a strong fall, during which it can lose up to 80-90% of its value. Actually, in this case, bitcoin has already lost more than 50% of its value in just one and a half to two months. Thus, given that the consolidation period may take a couple of years, the forecast of a drop to $10,000 per coin can be considered quite reasonable and real. "If they bought it just because it was going up, they are also likely to sell it because it is going down. I think a break below $30,000 will lead to major downside, as the vast majority of trading in 2021 was done above that level," said Louis Navellier. According to the manager, "When it crashes this time around, it will be more brutal due to the large number of individual investors involved."
In technical terms, in the 4-hour timeframe, bitcoin quotes fell to the support levels of $31,100 and $29,700 and bounced off them. This rebound can trigger a round of upward movement within the side channel of $31,100 - $41,000. Thus, at this time, you can count on the growth of bitcoin quotes up to the level of $41,000. However, BTC may also return to the support levels and try to overcome them again.