The value of digital money has been declining for the second day in a row after Bitcoin reached its maximum since December 2017 – $ 19.5 thousand. Industry representatives predicted when the market will return to growth.
On Friday, November 27, Bitcoin continued to fall in price. The cost of the first cryptocurrency again dropped below the $ 17 thousand mark. Two days earlier, on November 25, the BTC rate reached a maximum since December 2017 at $ 19.5 thousand. Yesterday, the price dropped to a local minimum of $ 16.2 thousand.
Altcoins also continue to lose in price: over the past day, Ethereum fell by another 4%, to $ 511, the XRP price dropped by 6%, to $ 0.523. Other largest coins in terms of capitalization (top 10) lost in price from 2% to 10% over the past 24 hours.
Despite the local decline, the trend remains upward, explained Mikhail Karkhalev, financial analyst at Currency.com. According to him, it will be possible to start talking about a fall if the bitcoin rate falls below last year’s maximum of $ 13.9 thousand. What is happening now in the market is a correction, possibly deep, but within an uptrend. The positions taken by market participants in options, as well as the trading volumes and the level of open interest, still indicate a bullish mood and a return to growth in the coming weeks, Karkhalev warned.
Leading analyst at 8848 Invest Viktor Pershikov called the current movement in the market a correction relative to long-term growth. He added that now major participants are fixing positions after strong growth. The fact that bitcoin did not update historical highs also indicates a local drop in demand in the market, the specialist is sure.
In an extremely negative scenario, it is possible that the bitcoin rate will drop by 65-70%, warned Nikolai Klenov, financial analyst at the Raison Asset Management investment company. Based on historical data, he identified two levels of BTC support – $ 16-15.5 thousand, which coincides with the upper border of the previous ascending channel, and $ 13-12 thousand. The expert called the moment when Bitcoin pushed off these levels as a good entry point.
“Long-term holders can buy BTC even now for 3+ years. But it is necessary to manage risks: trade without leverage and enter the volume strictly calculated according to the individual strategy,” the expert recommended.
Pershikov also advised not to wait for a deep correction, but to buy at the current level of Bitcoin, Ethereum and XRP. He called the current prices optimal for entering the market.
Financial analyst at Currency.com Karkhalev expects that in the coming days the bitcoin rate may drop to the range of $ 16-16.4 thousand, where an important support level is located. If it withstands the pressure of sellers, then it is from there that a rebound can begin.
As for Ethereum, the expert noted that in the near future its price may continue to fall to $ 450. There will be no fall below $ 450-425, Karkhalev is sure. He expects long-term consolidation in this range and a return to the upward trend.
The situation with XRP, according to the expert, differs from the situation with bitcoin and ether, since Ripple grew within the framework of “some kind of market manipulation.” Accordingly, its fall by 40% looks quite logical and natural. At the moment, the key support level for XRP is the $ 0.42- $ 0.45 range. If the market situation in cryptocurrencies deteriorates, the expert predicted a “fairly quick” return of the coin to the levels of $ 0.25- $ 0.3.
“The current correction plays into the hands of large players who continue to strengthen their positions in the crypto market. Over the next 5-7 days, the rate may continue to decline to key support zones, then consolidation and a set of positions by large participants may follow, since a lower rate is now beneficial for them for them. In the second half of December, probably by the New Year, the rate of bitcoin and Ethereum will move to growth again, I hope that the desire of the crypto community will come true and before the New Year the price maximum for bitcoin will be updated, “Karkhalev concluded.
Earlier, the analyst of the Amsterdam Stock Exchange Michael van de Poppe predicted a drop in the bitcoin rate to $ 14 thousand. Together with bitcoin, the entire cryptocurrency market will also decline – its capitalization may fall by 20%, to $ 400 billion, where a global level of support has formed, Poppé believes.
