On the 4-hour TF, it is evident that bitcoin has deviated below the ascending trend line, but overall, since the most recent decline, it has been mostly going sideways, which is exactly what we anticipated. Remember that the "collapse-flat-collapse" trading strategy will be used in 2022 when bitcoin is traded. As a result, despite crossing over the trend line, a protracted flat can now be seen.
One of the more intriguing recent developments involved Microstrategy's acquisition of an additional 2.4K bitcoin coins. In light of this, the business, which was once run by Michael Saylor, is still making purchases of the original cryptocurrency. What is he doing, and why? Here, it's critical to comprehend each investor's specific capabilities. Suppose you want to invest $10,000 in bitcoin and are willing to do so. How long are you prepared to wait before seeing a return on your investment? Can you wait five or ten years? If so, the investment is quite rational given the likelihood that bitcoin will eventually expand once again. But what if you're down to your final $5,000–10,000 and you desperately need cash? At all costs, you must get rid of the investment.
Businesses with financial means, such as Microstrategy, can purchase any quantity of bitcoins and hold them on their balance sheet for as long as they choose. Merely, the 5–10 years we discussed above. As a result, Microstrategy functions over a wide area. All 132.5 thousand coins were purchased for an average of $30,400. In other words, this investment is not profitable right now. But since the corporation is likely to keep purchasing, the average purchase price will drop and bitcoin will eventually increase in value. Even if this does not occur, the loss of several billion dollars will not cause the corporation to fail because it is so big. As opposed to numerous small and individual investors who might be purchasing coins with their last few dollars. Because of this, demand is currently not increasing. Many anticipate an even worse decline, and they typically invest in an asset while it is rising rather than declining. Of course, you can try to "guess" when the "bearish" trend will end, but how many people can foresee market reversals in cryptocurrency? In a market where Elon Musk's tweets can cause a $5–10,000 dollar movement? As a result, even though there are no buy indications, we do not advise taking long positions.
The quotes for "bitcoin" very rapidly completed the creation of an upward trend in the 4-hour time frame and consolidated below the trend line. As a result, we are currently anticipating the cryptocurrency to continue falling, with a target price of $12,426. It might take place right now or in a few months. There are still no indications that bitcoin will experience rapid growth in the near future.
Relevance up to 19:00 UTC+1 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
Read more: https://www.instaforex.eu/forex_analysis/331397
