Why the rate of the main digital asset on the night of November 11 sharply decreased by 9% and what to expect from the crypto market in the coming weeks
On the night of November 11, the price of bitcoin dropped to $ 62.8 thousand. This happened after the cryptocurrency renewed its all-time high at $ 69 thousand. At 14:10, the coin is trading at $ 65.1 thousand. Topplabs.org experts explained why the bitcoin rate decreased by 9% and what to expect from cryptocurrency in the near future.
Bitcoin met resistance
Bitcoin's renewal of a historical maximum above $ 69 thousand was provoked by investors' fears due to the growth of inflation in the United States, says Nikita Soshnikov, director of the Alfacash cryptocurrency exchange service. In his opinion, bitcoin rose sharply in price, but met resistance from "bears".
“At the level of about $ 70 thousand, multimillion-dollar orders for the sale of cryptocurrency have been placed. These are miners mining bitcoins, and those investors who entered the asset for $ 20- $ 30 thousand and now want to get out of it with a profit, "the expert noted. He is sure that profit-taking by large investors caused a sharp decline in the bitcoin rate to $ 62.8 thousand.
The overlap of technical and fundamental factors led to a sharp drop in the value of bitcoin, says Nikita Zuborev, senior analyst at Bestchange.ru. In his opinion, the situation should be considered as a technical correction after the next update of the maximum, which inevitably had to take place.
Correlation with stock markets
The decline in bitcoin by more than 9% on the night of October 11 is the reaction of the asset to the general correction of world stock markets, explained the head of the analytical department of AMarkets Artem Deev. According to him, the Asian and American markets sank after the information about the growth of inflation in China and the United States.
“In October 2021, inflation in the United States accelerated to 6.2%, which was a record in the last 30 years – since 1990. Such data led to a reduction in the positions of investors, ”the analyst noted.
The fall in cryptocurrency market quotes is a temporary correction and the industry will continue to grow in the future, Deev noted. According to him, many investors understand that digital assets can be a good hedge against inflation.
Everything goes according to plan
The general trend of the digital assets market remains bullish, despite the sharp decline in bitcoin on November 10, Soshnikov is sure. He recalled that the trend towards the accumulation of bitcoins by investors and the withdrawal of cryptocurrencies from exchanges continues. Considering that the coin managed to gain a foothold above $ 60 thousand, Soshnikov predicts a rise in the price of the cryptocurrency to $ 100 thousand by the beginning of next year.
In the next two weeks, the cryptocurrency will be trading around the $ 65,000 mark with attempts to test $ 70,000 and possible drops to $ 60,000, Soshnikov predicted.
“When the potential of bears is exhausted and the wall of sell orders in the region of $ 70 thousand becomes thinner, then Bitcoin will be able to show a new historical maximum,” the expert added.
A senior analyst at Bestchange.ru has a similar opinion. According to him, in the next two weeks, Bitcoin will be traded in the range of $ 62-68 thousand and accumulate volumes for further growth.
With a high probability, in the near future, Bitcoin will win back some of the losses and again begin testing the level of $ 70 thousand, says the head of the analytical department at AMarkets. He explained that investors are afraid of a large-scale correction in the securities market, so they continued to invest in alternative assets, including digital ones.