Why in the coming days the price of the first cryptocurrency may drop to $ 53-54 thousand and how this will affect the crypto market
This week, the bitcoin rate reached $ 64.2 thousand, and then went down. The price of the first cryptocurrency fell to $ 60 thousand. At 10:55 Moscow time on November 7, the asset is trading at $ 61.7 thousand, and its capitalization is $ 1.17 trillion, according to CoinGecko. Topplabs.org experts explained what to expect from the crypto market in the coming days.
Exit from the "wedge"
From the point of view of technical analysis, a “wedge” pattern can be traced on the bitcoin chart, said Ivan Petukhovsky, co-founder of the EXMO crypto exchange. According to him, this pattern is characterized by a decrease in volatility and, like a compressed spring, the price exit from this pattern can be quite rapid. In the event of an exit from the "wedge" with a breakdown of the lower border, one should expect a decrease in the cost of bitcoin to the zone of $ 56-58 thousand, the expert says. If the cryptocurrency manages to exceed $ 64 thousand, this will contribute to its further strengthening, Petukhovsky added.
On the one hand, technical analysis of bitcoin indicates positive dynamics and a high probability of positive developments, Nikita Zuborev, senior analyst at Bestchange.ru, is sure. According to him, within the next two weeks the asset may exit the accumulation stage and continue to grow. Even if this scenario is implemented, the rate of the first cryptocurrency may decline to $ 53-54 thousand as early as next week, the analyst warned.
On the other hand, there is a more global tendency of the sequential accumulation of "bitcoin" – "top altcoins" – "other coins", says Zuborev. In his opinion, given this trend, the crypto market is at the last stage of growth – low-liquid tokens and unnamed projects are “shooting out”. Such accumulation cycles are often replaced by long-term bearish trends, the analyst said.
“According to this negative scenario, Bitcoin will continue to stagnate next week, and in the middle of the month the trend will finally change to a medium-term bearish, which may last until the end of the year,” Zuborev predicted.
The start of the "altcoin season"
The full season of altcoins started this week after Ethereum updated its all-time high above $ 4.67 thousand, Petukhovsky said. In his opinion, if bitcoin continues to show passive dynamics within the framework of the current correction, this will contribute to the further growth of altcoins.
The current "altcoin season" is highly likely to be local in nature, since the preferred scenario before the end of the year and the beginning of the next is an uptrend in bitcoin with an eye to updating its historical maximum, Petukhovsky added.