Wednesday, May 29, 2024

Why bitcoin can crash to $ 23K?

Bitcoin continued to fall in price on July 16, approaching $ 30 thousand per coin. Experts explained what factors can lead to another drop in quotations.

July 15, the price of bitcoin dropped to $ 31.4 thousand, a low in three weeks. Today, July 16, the digital coin continued to decline and trading at $ 31.1 thousand.

The CEO of the investment company DoubleLine Jeffrey Gundlach predicted that the price of the first cryptocurrency (Bitcoin) could fall to $ 23 thousand.

Gundlach argued that a technical head and shoulders signal can be seen on the bitcoin chart.

The appearance of a “head and shoulders” pattern in technical analysis indicates a reversal of the existing trend and a likely price move in the opposite direction.

At the end of June, analysts at the investment bank JPMorgan gave a similar forecast.

In their opinion, the value of the first cryptocurrency (Bitcoin) may fall to $ 25 thousand due to the possible sale of shares of the Grayscale Bitcoin Trust bitcoin fund after the six-month blocking period.

The Grayscale Bitcoin Trust units have a deferred redemption mechanism. GBTC owners must keep them for six months before they can be sold.

In July of this year, the shares that were purchased in January will be unblocked.

According to the Bybt service, more than 16 thousand bitcoin will be unlocked on July 18 alone ($ 560 million at the rate of July 12). In total, about 40 thousand bitcoin ($ 1.4 billion) will be unlocked in July.

bybt.com

Lack of demand


The cost of bitcoin may fall in the coming days, as there is no sufficient demand for cryptocurrency on the market, forecasts Mikhail Karkhalev, financial analyst at Currency.com crypto exchange.

According to him, at the moment, Bitcoin definitely looks weak and keeps the support level in the region of $ 30 thousand from falling.

“If another attempt to break through the psychologically important level of $ 30 thousand takes place, then bitcoin may fall to $ 23 thousand, but this is in theory,” the analyst predicted.

Pressure on the course


A further decline in the rate of the main cryptocurrency is a matter of time, says Viktor Pershikov, a leading analyst at 8848 Invest.

He noted that, in general, the fundamental picture for bitcoin is rather negative, so the pressure on the rate remains.

“The current picture of the decline indicates the risk of a rapid fall in prices, which would be a plus for market participants, since a sharp collapse and liquidation of positions will allow the asset to be redeemed rather quickly,” the analyst added.

The sale of GBTC shares, which was pointed out by JPMorgan, is indeed an indicator that speaks of a possible decline in quotations, which is already underway, says Anton Kravchenko, CEO of Xena Financial Systems.

According to him, now the market is looking for an equilibrium point, so in the near future the cost of bitcoin may fall to $ 23 thousand and below.

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