“Bitcoin at a Crossroads.” Why the price of cryptocurrency can fall to $ 20 thousand?

On Friday morning, the digital coin again failed to overcome the level of $ 40 thousand, which caused new fears about the continuation of the rate correction. What is happening in the market and when will the decline intensify?

Over the past day, the cost of bitcoin has decreased by 7%, to $ 36.7 thousand. At the same time, on the morning of June 4, the cryptocurrency once again unsuccessfully stormed the level of $ 40 thousand, reaching $ 39.5 thousand.

Calmly recover and continue to grow bitcoin today does not give information noise, explained the financial analyst of the crypto exchange Currency.com Mikhail Karkhalev. Shortly after the bans in China, a possible tightening of the regulation of the crypto market was announced in the United States.

“It would seem that the market has reacted to all the events and has already embarked on the path of recovery, as with his next tweet Elon Musk collapsed the price by 5%. I would like to hope that in the near future the market will simply start to ignore its activity in social networks, ”added the analyst.

Elon Musk, the head of one of the largest cryptocurrency holders among public companies, electric car maker Tesla, posted a meme on his Twitter with the word bitcoin and a broken heart emoji. Around this time, the last wave of decline in cryptocurrency quotes began.

The main reason why the cryptocurrency cannot overcome the $ 40K mark is in the absence of fundamental triggers. The market has found equilibrium and, most likely, will remain in it until the news background changes, explained the head of the data analysis department of CEX.IO Broker Yuriy Mazur. He noted that the first cryptocurrency showed significant resilience, although the entire last month was under strong informational pressure from both Tesla and the Chinese authorities.

In May, the electric car manufacturer suspended accepting payments in bitcoins due to the non-environmentally friendly method of mining. And the Chinese authorities called for stricter regulation of mining and crypto trading in the country.

According to the expert, surges in price dynamics are possible both above and below the range of $ 35-40 thousand, but they are likely to be temporary and bitcoin, at least until August, will be quite stable. However, if the situation in May repeats, when there was an extremely negative flow of information for BTC, it is likely that the cryptocurrency could test the level of $ 25 thousand, Mazur warned.

“We see the main risk for cryptocurrency in the fall of this year, because, perhaps, in August, maybe even earlier, the United States will hint at the timing of the rollback of economic stimulus, and thus give investors a signal about the need to take profit on assets. If this event is superimposed on the negative background from China and large corporations, bitcoin may return to $ 20 thousand, ”the analyst predicted.

The likelihood of a further fall in the rate is high, says Anton Kravchenko, CEO of Xena Financial Systems – if a new wave of decline occurs, then Bitcoin will definitely go below the $ 30 thousand mark.

Mazur stressed that Bitcoin is now “at a crossroads”, so both a positive scenario and a negative one are possible. But for now, the specialist adheres to a moderately positive scenario.

Karkhalev from Currency.com also warned that the cryptocurrency quotes could be negatively impacted by events in the US. Today, data on unemployment in the United States are released, on June 10 inflation data will be published, followed by a Fed meeting. If macroeconomic data push the Fed to scale back the QE program and stimulate the economy, it could hit hard on risky asset markets, including cryptocurrencies. The likelihood of such a scenario is small, but still it is, concluded Karkhalev.