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Over the past day, the first cryptocurrency has risen in price by almost 8%. Experts explained what a sharp rise in quotations may indicate and whether the main digital asset will be able to exit the downward movement in the near future
On the afternoon of December 21, the price of bitcoin on the Binance crypto exchange exceeded $ 49.3 thousand. During the day, the asset rose by almost 8%, and its capitalization increased to $ 930 billion, according to CoinGecko. Experts from RBC-Crypto explained whether a sharp rise in the asset could indicate the completion of the correction.
False breakdown
The current bullish momentum has indeed broken through the local downtrend in Bitcoin, says Nikita Zuborev, senior analyst at Bestchange.ru. However, according to him, this does not guarantee the end of the downtrend.
“Until there has been a confident consolidation with a large traded volume above $ 48 thousand, the rollback remains real, and the breakdown of the trend may turn out to be false. Now the price is in a very uncertain position, ”the analyst explained.
The most probable scenario in the current conditions Zuborev considers a rollback to the level of $ 44.5-45 thousand with a further decline in the region of $ 42 thousand in early January. After that, events may occur on the market that will provoke a sharp change in trend and Bitcoin’s return to growth, Zuborev admitted.
Condition for growth
A clear signal for the recovery of the bitcoin price is a breakdown and consolidation of the asset above the $ 55 thousand level, says Sergey Zhdanov, CEO of the EXMO crypto exchange. In his opinion, while this has not happened, it is not worth talking about the exit from the correction.
“As for the“ bottom ”, I think that many regard the level of $ 40 thousand as an opportunity to buy, which means that we will be able to push off from it and go up,” Zhdanov predicted.
Taking into account the current dynamics of bitcoin until the end of the year, there is still a chance for a breakdown of the $ 55 thousand mark, the expert added.
If we consider the likelihood of the scenario of updating the historical maximum, then it directly depends on the ability of bitcoin to reach the level of $ 55 thousand by the end of the year or $ 60 thousand by the end of January, Zuborev says. In his opinion, even if the exit from the local downtrend is confirmed in the coming days, this will not mean a complete cessation of the fall, and even more so that this trend will be replaced by an increase.
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