Time to buy Bitcoin or not?
Bitcoin fell below $48,000 last Friday, losing a quarter of its value in just nine days.
A number of negative news contributed to the decline in BTC. President Biden plans to raise the capital gains tax on the rich. A negative background could also be created by fraud on the Thodex crypto exchange, which was accompanied by the escape of the head of the company and the suspension of trading. The hype around the placement of shares of the Coinbase crypto exchange on the Nasdaq has also ended.
In addition, not so long ago, some major players created new exchange-traded investment funds (ETFs), which, as a rule, earn on the fall of the bitcoin exchange rate. For example, Morgan Stanley has launched two new funds for the main cryptocurrency.
Bitcoin last week fell below the 50-day moving average (MA) and is trying to stay above the 100-day MA, which is now passing around $50,000. The loss of such an important line as the 100D-MA may promise a deeper correction.
Experts warn of a possible decline in the value of Bitcoin in the event of negative news or consolidation of its rate below $50,000. In the worst case scenario, BTC may fall to $15-18 thousand.
If Bitcoin continues to fall and breaks the support level around $42,500, the quotes may fall to $30,000.