Black Pipper

Forex Dreamers

Bitcoin: Even Cryptocurrencies Are Critical

Since yesterday, the technical picture for bitcoin has not changed, but it has cleared up. The sidewall 53980.47 – 57513.35, marked with blue dotted lines, has been confirmed. Now the price is recovering in it, there is a power reserve for growth.

A sideways movement, especially after such strong movements as the 14% crash over the weekend, is a halt, “settling down,” and a sign of uncertainty. The exit from it can be impulsive, but in which direction, it is unknown.

In terms of price and technical analysis, I believe that the medium-term trading corridor for BTCUSD is in the range of $ 50,000 – $ 60,000 per coin. Therefore, the mid-term forecast described yesterday remains relevant. If there is a breakdown and consolidation below the support of 53,980.47, Bitcoin may fall to $ 50,000 per coin. And if the local resistance of 57513.35 is broken and the price consolidates above it, there will be a chance of recovery to at least $ 60,000 per BTC.

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But let’s not look at the opinions of authoritative influencers. It is worth noting that even those who are long-term bullish start to worry locally.

Scott Minerd, chief investment officer of Guggenheim Partners for global investments, today announced that Bitcoin has grown too much, too fast. At the same time, in the medium term, he is quite optimistic about the prospects for the main cryptocurrency.

Minerd believes that the situation is now “very frothy”, so bitcoin, it is quite possible, will be strongly corrected.

“I think we could go back to $ 20,000-30,000 in Bitcoin, which would be a 50% decline. Interestingly, in relation to the main cryptocurrency, we have already seen similar recessions before, ”the expert noted.

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But this is a short-term perspective. And he sees it as part of the “normal evolution of a long-term bull market.” Ultimately, the price of the main cryptocurrency can reach $ 400,000 to $ 600,000 per coin.

Last year, when Bitcoin hit its all-time high of $ 20,000, Minerd already predicted an all-time rise for Bitcoin, citing its limited supply of 21 million coins.

The rise of bitcoin and its possible significant correction are now worrying many of those who previously bought cryptocurrency. Investor Bill Miller, who has owned bitcoins for many years, noted in an interview with CNBC on Tuesday that the main coin is in a bubble. The situation is similar to that of 2017. Then, after rising to almost $ 20,000 per 1BTC, the price fell by almost 80% and the “crypto winter” began.

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“Supply is growing by 2% per year, while demand is growing faster. That’s all you really need to know about the reason for the rise in BTC, ”said Miller. But this growth may not be straightforward because, in his words, “Bitcoin’s volatility is the price you pay for performance.”

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