The cost of the first cryptocurrency dropped to $ 58 thousand. Experts explained what it was connected with and when the asset can return to highs
In the afternoon of October 27, the bitcoin rate fell by 7%, to $ 58 thousand. Against this background, the positions of crypto traders in the amount of over $ 548 million were liquidated in an hour, the volume of forcibly closed transactions amounted to $ 840 million per day.
It seems that this is a technical correction after the recent sharp rise in the rate, says Nikita Zuborev, senior analyst at Bestchange.ru. Last week, the first cryptocurrency set a historic maximum at around $ 67,000.Since then, it has fallen in price by 12%.
“We do not yet expect that the depth of the correction may increase. But, in any case, technically, the trend will remain upward even if the rate drops to $ 50,000, ”Zuborev warned.
In the coming weeks, he expects the continuation of consolidation, at this time fluctuations in the range of $ 58-63 thousand are possible. If the fall continues in the coming days, the range may be larger, the expert warned.
“We do not expect a global trend change, the current fall will have a local character,” Zuborev said. According to him, the beginning of the correction was aggravated by a secondary factor in the form of a local strengthening of the dollar among the world's reserve currencies.
So far, we cannot talk about the beginning of a deep correction, added Anton Kravchenko, CEO of Xena Financial Systems. He suggested that the price of bitcoin will not fall much below the current levels of about $ 59 thousand, after which he will make one or two more attempts to update the all-time high.
The main reason for the current decline is the execution of orders for the sale of large lots made at the peak of the bitcoin price, says Nikita Soshnikov, director of the Alfacash cryptocurrency exchange service. In his opinion, as soon as the bitcoin rate exceeded $ 65 thousand, investors who entered the asset for $ 20 thousand and $ 30 thousand, as well as miners, especially from China, who were forced to relocate production outside the country, began to fix profits at the maximum rate.
“As a result, the bitcoin price was unable to gain a foothold above $ 65 thousand, and when it rolled back to $ 62 thousand, it became clear that now bitcoin does not have the resource to crush the orders put up for sale. Market participants began to place sell orders at $ 60-62 thousand, which led to a fall in the rate below $ 60 thousand, ”Soshnikov explained.
He predicted that in the next week Bitcoin will be trading in the range of $ 58-60 thousand, after which a new wave of growth will begin. By the end of November, we can see the first cryptocurrency for $ 70 thousand, and by Christmas – for $ 80 thousand.