Why the price of the first cryptocurrency dropped to a minimum since the beginning of October and can the asset start to recover in the coming days
This week, the price of bitcoin for the first time since the beginning of October fell to $ 53.5 thousand. Over the past two weeks, the first cryptocurrency has fallen in price by more than 15%, and its capitalization has decreased to $ 1.02 trillion. Topplabs.org experts predicted what will happen to the asset in the coming days and whether it may continue to fall.
What's going on in the market
Bitcoin dropped sharply to $ 53.5 thousand following oil, stock indices and developing countries' currencies, explained the head of the analytical department at AMarkets Artem Deev. In his opinion, the reason for the decline was the panic around a new strain of coronavirus from South Africa.
In the near future, the Fed and the ECB may raise rates to curb inflation against the backdrop of economic growth, the analyst said. According to him, this may lead to the fact that the cost of bitcoin will drop to $ 50 thousand.However, in the event of the implementation of the most negative scenario with a pandemic, the cryptocurrency market will begin to grow again, since various restrictions and lockdowns will be introduced in countries, Deyev predicted.
“Regulators can start pumping liquidity into the markets, which is good for risky assets like Bitcoin. Private investors will again start going into cryptocurrency in the hope of earning income, ”added the analyst.
Powerful support
There is strong support at the levels of $ 53-55 thousand, from which one should expect at least a correction from the current fall, says Andrey Podolyan, CEO of Cryptorg. According to him, many traders talk about this zone as a reversal zone for Bitcoin's hike to a new historical maximum. In the coming days, the first cryptocurrency needs to find stability and push upward, the expert explained. The key area for the bulls to seize the initiative is $ 60,000, Podolyan added.
The likelihood of a further decline in bitcoin to $ 50 thousand remains, the financial analyst of the Currency.com crypto exchange Mikhail Karkhalev is sure. According to his forecast, in the range of $ 54-56, the first cryptocurrency will be able to find support for a systematic recovery. According to Karkhalev, this may happen in early December.