Everscale Partner
In the spring, the cost of the main digital coin increased dramatically, but at the beginning of summer the situation changed. We tell whether the asset price will rise again and what it will be by the end of the year.
In March 2019, Bitcoin traded below $ 4,000, in early June it rose to almost $ 9,000. Then the cryptocurrency sharply returned to the level of $ 7000 and is now trading at around $ 8000. According to many experts, such as trader Ton Weiss, the whole point is that the bear market is not over yet. Therefore, the fall of the coin may continue, and at least December at $ 3,200 – to be updated.
There may be several reasons for the current fall, Nikita Zuborev, a senior analyst at Bestchange.ru, outlined two main ones. First, on Monday, the largest execution of bitcoin futures contracts took place at the moment, which could not pass unnoticed by the entire market. Secondly, rapid growth is always accompanied by periods of consolidation, the expert explained.
“We should not forget that before this fall, in May, Bitcoin grew by 62%. In such situations, it is a matter of time when the impulse of buyers will be exhausted and the market will need time to stabilize prices,” Zuborev reminded.
He advised to observe the views in the industry, since the general mood of the participants is a factor influencing the price in the cryptocurrency market. For example, over-the-counter platforms reported an increase in trading volumes and the arrival of new customers. Investment company Dadiani Syndicate announced that one of its clients plans to acquire up to 25% of all currently trading bitcoins.
“Such a purchase would be a very serious impetus for the price of Bitcoin, if we consider that the real volume of bitcoins available for turnover is now about 6 million coins out of 17.7 million generated today. Do not forget about the upcoming halving, which in previous times gave a powerful impetus to growth,” the analyst warned.
According to him, in the long term, even despite the current correction, the “bullish” trend in the market continues; for all technical indicators, the decline is still in the acceptable range and it is too early to talk about a reverse trend change. After consolidation, the specialist expects stable growth, which will not end soon.
According to Andrei Grachev, CEO of Huobi Russia, now we are in a bullish stage of the market, which “has confirmed its rights”. Now there is a normal decline, as Bitcoin has increased by 125% without corrections.
“If we talk about forecasts, I would look at the horizon of $ 25- $ 35 thousand for Bitcoin at the end of the year with a correction of up to $ 6- $ 7 thousand in June-August,” Grachev suggested.
Xena Exchange Operations Director Konstantin Plavnik is confident that a balance has now formed on the market. The expert argues that in the summer months there is always some calm, so soon there will most likely not be shocks.
“We expect that in the coming month, volatility will decrease. The rate stabilizes in the range of $ 7- $ 8 thousand for BTC with a tendency to a gradual decrease,” noted Plavnik.
The bitcoin rate rebounded from $ 8,600 to $ 7,700 due to the fact that traders and investors tried to capitalize on speculative transactions or take profits, explained Murad Salikhov, advisor to the chairman of the board of the Financial Innovations Association. According to him, the interval of $ 7,500- $ 7,900 became quite predictable for the first cryptocurrency at the beginning of summer.
“Breaking the bar at $ 7,900 can signal that Bitcoin will continue the growth trend to $ 8,100- $ 8,300,” the specialist said.
He believes that periodically rumors and reviews of analysts, testifying to an artificially high overestimate of the value of BTC, hinder the full development of their entire growth potential with cryptocurrency. It is precisely this that discourages new investors and prevents Bitcoin from appreciating considerably, concluded Salikhov.
All experts are confident that the rollback of the first cryptocurrency course in early summer is quite normal. This will not prevent the asset from continuing to grow in the long term. There will be similar drops on its way; this is a completely normal process, without which growth is impossible.
Alex Zaskalov
EXPi
