Experts explained how the decline of the first cryptocurrency to an almost two-month low will affect the quotes of digital assets in the coming weeks
On November 26, the price of bitcoin for the first time since the beginning of October dropped to $ 53.5 thousand. During the day, the cryptocurrency fell by more than 6%. The topplabs.org experts explained what it means to reduce bitcoin to a local minimum in almost two months and how it will affect the cryptocurrency market.
Final wave of correction
The decline in the value of bitcoin to $ 53.5 thousand is the final wave of correction that is currently taking place in the digital asset market, according to leading analyst at 8848 Invest Viktor Pershikov. According to him, the fall in the price of cryptocurrency is caused more by fundamental factors.
"A new type of coronavirus, discovered in Africa, made investors nervous and" go into the cash "for risky assets," the analyst said.
The crypto market currently has no internal problems that could negatively affect quotes, added Pershikov.
Nothing critical has happened on the markets today, says Vladimir Smetanin, CEO of the Swiss financial company Newcent. He recalled that the American stock market was closed on November 26. Negative news about a new strain of coronavirus provoked panic in conditions of low liquidity, so quotes fell within 5-7%, the expert explained. According to Smetanin, this was a good opportunity to open positions in the medium term.
“A further drop to $ 50 thousand is possible, but the probability of this is not higher than 20%,” Smetanin said.
Buyers defend the $ 50K level.
Bitcoin now looks attractive for purchases, as buyers defend the support level, which is in the region of $ 50,000, says Dmitry Machikhin, CEO of Bitnalog. The asset will stay at the level of $ 53-54 thousand for several more weeks, the expert predicted. In his opinion, cryptocurrency will need this time to accumulate volumes for a further hike to $ 60 thousand.
In the near future, the leading analyst at 8848 Invest is also expecting the stabilization of the bitcoin rate. According to his forecast, after a period of accumulation, the first cryptocurrency will rise in price by at least 15-20% ($ 61-64 thousand from current levels) by the end of the year.