We can assume that the attempt to gain a foothold below the Ichimoku cloud on the 24-hour time frame ended in failure. A breakout of the Senkou Span B line happened, but it turned out to be false. At this time, the cryptocurrency has worked the Kijun-sen line (as we predicted), from which it has rebounded and, accordingly, may resume its fall. We believe that the downward movement is not yet complete and are waiting for its next round. Meanwhile, the head of the Ark Invest investment fund, Cathie Wood, once again gave a bunch of compliments to digital gold. According to her, Bitcoin is growing relative to gold and is superior to it as a means of hedging risks. Ms. Wood said that Bitcoin allows you to protect your funds in conditions of economic uncertainty. She referred to the events of 2023, when Bitcoin showed sharp growth amid the bankruptcy of three large banks in the United States. In her opinion, investors trust the traditional banking system and fiat money less and less. With the approval of the Bitcoin ETF, investment volumes in the first cryptocurrency will only increase as institutional traders now have an easy and secure way to invest in cryptocurrency. It is worth noting that in the States, 2024 may be quite difficult, although everything in this world is relative. Some experts continue to expect a recession from the American economy, which will certainly lead to increased unemployment and a crisis in the banking segment. Many large companies have announced mass layoffs. Thus, the situation in 2023 may be repeated, when Bitcoin rises against the backdrop of investors fleeing traditional banking investments.
At the same time, not all experts believe that Bitcoin will overtake gold. For example, one of the leading Bloomberg analysts, Mike McGlone, believes that market expectations for a Fed rate cut may not affect the value of the first cryptocurrency. It is believed that “tight” monetary policy reduces the demand for risky assets, which includes Bitcoin, but this time the situation may be different. We believe that in any case, the potential Fed rate cut has already been taken into account by the market. Bitcoin has been growing for more than a year, and all this time the Fed rates have either increased or remained at their maximum value. The factor of rate cuts has already been taken into account by the market. On the 24-hour time frame, Bitcoin rolled back slightly, but we believe that the fall will resume, since the market has already fully taken into account the approval of the Bitcoin ETF and is now taking profits on longs. Therefore, we believe that buying now is not advisable, but short positions with a target of $34,267 are yes. Only around the levels of $34,267 and $31,000 will we consider the restoration of the bullish trend.
