The price of the first cryptocurrency is approaching its all-time high set on February 21. Experts gave a short-term forecast for the quotes of the main digital coin and explained why the situation remains uncertain.
On Tuesday, March 9, Bitcoin is traded on the Binance crypto exchange at a level of $ 54 thousand. Over the past day, the first cryptocurrency has risen in price by 7%, since February 28 – by 27%. The asset is approaching its all-time high of $ 58.3 thousand, set on February 21. Until the record mark is renewed, the coin remains less than 8% growth.
At night, bitcoin overcame the resistance level of $ 52 thousand, after which it continued to grow to the $ 55 thousand mark, explained NewsBTC analyst Ayash Jindal. He warned that the value of the asset could be adjusted to $ 52.8 thousand and $ 52 thousand, where he will probably find support from buyers and continue to rise in price. Jindal added that if the cryptocurrency rises above $ 55K, it could sharply reach the next important zone of $ 58K and then refresh its all-time high.
In the next week, bitcoin quotes may reach $ 60 thousand and $ 62 thousand, said Max Krupyshev, CEO of the CoinsPaid payment service. He attributed the latest wave of bitcoin growth to the decline in stock prices of technology companies and companies in emerging markets, primarily China.
At the end of 2020, and also partially from mid-January to the second half of February 2021, the Chinese market grew rapidly. The money of those investors who are willing to take risks for the sake of the prospect of high returns were invested there, Krupyshev said. According to him, now that the Chinese authorities have hinted at the possibility of tightening regulation of the economic sphere, while the economic recovery has not yet been achieved, investors are urgently withdrawing money from Chinese assets.
“I will assume that part of this money, which was ready to take risks for the sake of high profitability, flowed into bitcoin, which triggered its growth against the backdrop of falling Chinese markets and prices for shares of technology companies,” the expert said.
The situation with bitcoin is now extremely ambiguous, so it is difficult to predict anything with a high degree of probability, added Michael Ross-Johnson, CEO of the cryptocurrency p2p platform Chatex. He recalled the outflow of funds in bitcoin from cryptocurrency exchanges to cold wallets. This means that in the near future there will be a shortage of assets on trading floors. If the interest in digital currency on the part of institutional investors continues, then the cost of bitcoin will really increase, the specialist concluded.
“At the same time, there is no guarantee that the first institutions (who purchased bitcoin earlier) will not take it from cold wallets back to the exchange. If they do this and sell bitcoin to the “second tier” of institutional investors (and at a much higher price than before), this will lead to a serious correction of the coin rate, “Ross-Johnson warned.
At the same time, in his opinion, now, after Bitcoin has overcome the resistance level of $ 52.2 thousand, the cryptocurrency has the potential to reach $ 61 thousand by the end of this week. However, if the dynamics are downward and the price of the main digital coin drops below $ 49.5 thousand, it may return to a local minimum of $ 43 thousand. The expert is inclined to a scenario in which the asset will continue to grow.
