FX.co ★ Bitcoin is doomed: how much can the main cryptocurrency fall in price this week?

Bitcoin is doomed: how much can the main cryptocurrency fall in price this week?

Bitcoin is doomed: how much can the main cryptocurrency fall in price this week?

Bitcoin met the new working seven-day period with a decrease. On Monday morning, its price fell to the level of $31,616, having sunk by 1.62% only over the past day.

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Bitcoin is doomed: how much can the main cryptocurrency fall in price this week?

Analysts are confident that the downward trend will continue in the coming days. At this stage, there are practically no prerequisites for the growth of BTC, but there are plenty of negative factors.

The most obvious threat to the crypto market now is a possible sale of shares of the Grayscale Bitcoin Trust fund. This month, their 6-month lock expires, after which the owners will be able to say goodbye to their bitcoins. We are talking about 40 thousand coins worth more than $1.4 billion.

The consequences of such a large-scale sale were previously estimated by analysts of the American bank JPMorgan. They predicted a drop in BTC quotes to $25 thousand if Grayscale investors decide to get rid of most of their crypto assets.

However, there are opinions that in the short term, BTC quotes may fall even lower - up to about $20 thousand. Moreover, the collapse threatens not only bitcoin. As experience shows, falling first, the main coin drags the entire cryptomarket after it.

Also, the pressure on the digital asset market this week will continue to be exerted by news from China. The ban on mining in the Middle Kingdom has hurt bitcoin and other tokens. And although investors have already "digested" the negative messages, assessed their potential harm and reflected all this on the quotes, it is too early to say that the situation has completely normalized. The market will feel this post-traumatic syndrome for a long time.

Not only fundamental factors, but technical indicators also speak about the hopeless prospects of bitcoin for this week. For example, the legendary Wall Street investor Jeffrey Gundlach, who was nicknamed the "Bond King", draws attention to the classic head and shoulders trend reversal figure formed on the chart.

The head of the investment company DoubleLine Capital believes that, if the "neck" line is broken near the $30 thousand mark, the decline of bitcoin can significantly accelerate.

At the same time, the expert emphasizes that this model has never inspired confidence in him before. However, this time it looks more than convincing, making you believe that soon bitcoin will be available for purchase at a price below $23 thousand.

At the same time, the investor admits that in the long-term future, the main digital asset will demonstrate better dynamics than the US currency. In his opinion, the observed US budget deficit may push the dollar to new lows.

At the same time, analysts remind investors that August is traditionally considered one of the most unfavorable months for bitcoin, and therefore most forecasts for the end of July regarding its value remain negative or neutral.

In the absence of loud news that can affect the pricing of the asset, BTC will continue to trade in a narrow range, as it has been doing for a long time. According to experts, the quotes will be at the level of $30-35 thousand, but at the same time we will see mainly a downward trend.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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