The price of the first cryptocurrency has renewed its all-time high, which was set in mid-April. Should the asset holders close positions in the current situation, or does the coin still have potential for growth?
On October 20, the price of bitcoin updated its historical maximum and exceeded $ 67 thousand.Over the last 24 hours, the cryptocurrency has risen in price by 8%, and its capitalization has increased to $ 1.25 trillion. Topplabs.org experts explained whether it is worth selling bitcoin now or whether the asset has the potential for further growth.
Growth potential is not exhausted
If bitcoin is already in the portfolio, then at the moment it should not be sold, since the potential for local growth has not yet been exhausted, Nikita Zuborev, senior analyst at Bestchange.ru, is sure. He advised crypto investors to place a stop loss order at about $ 65,000 in order to secure the position from the start of a correction, but at the same time continue to hold the asset.
Correction probability is high
In the current situation, it is not worth buying the first cryptocurrency, since the risk of a fall in its value is quite high, the analyst warned. He added that the technical parameters indicate a high likelihood of a correction beginning.
According to technical indicators, bitcoin has the potential to grow up to $ 70 thousand, Zuborev noted. According to him, further it will be necessary to assess the trading volumes of the Bitcoin ETF from ProShares, which began trading on the New York Stock Exchange (NYSE) on October 19. If the volumes continue to grow steadily and very quickly, then it will be possible to talk about the prospects for further impetus, Zuborev noted.
A correction can come at any time, says Mikhail Karkhalev, financial analyst at Currency.com cryptoexchange. In his opinion, in the current situation it is difficult to predict the level at which the price of the first cryptocurrency can reverse in the opposite direction.
“Stop-loss can be placed in the region of $ 63 thousand, if the price goes below this level, then this is most likely a deeper correction, which is better to wait out,” the analyst explained.
The renewal of the historical maximum above $ 67 thousand bitcoin owes to two very important events, says Maria Stankevich, Development Director of the EXMO crypto exchange. According to her, these events include the settlement of the dispute between Tether and Bitfinex with the US Commodity Futures Commission (CFTC), as well as the start of trading in the first US Bitcoin ETF from ProShares.
“The new frontier is not speculation, but real events that provoked such growth,” the expert noted.
According to Stankevich's forecast, in the current situation, bitcoin may rise in price to $ 72 thousand. In this transaction, it is better to set the stop loss at the level of $ 60 thousand in order to limit losses in the event of a fall in the price of an asset, the expert added.
The trading volume of bitcoin ETFs from ProShares at the end of the first day amounted to slightly more than $ 1 billion, which speaks of interest from investors, said Vladimir Smetanin, CEO of the Swiss financial company Newcent. According to his forecast, in the next three to four months, the price of bitcoin may exceed $ 100 thousand.