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Over the past seven days, the first cryptocurrency has risen in price by more than 6%. To what level the asset can grow in the near future and what to expect from the crypto market during the New Year holidays
This week, the price of bitcoin exceeded $ 51.8 thousand. As of 10:35 Moscow time on December 26, the first cryptocurrency is traded at $ 49.8 thousand. Experts from RBC-Crypto explained what to expect from the asset in the coming days.
Growth in trading activity
Within a week, bitcoin can rise in price to $ 55 thousand with periodic drawdowns of up to $ 51 thousand, predicted Nikita Soshnikov, director of the Alfacash cryptocurrency exchange service. In his opinion, immediately after the New Year, the cryptocurrency may make attempts to exceed $ 60 thousand, but the probability of consolidation above this mark is low.
“I do not think that the New Year holidays will drop much in terms of trading volume. On the contrary, during this period one can expect an increase in trading activity, ”the expert explained.
In general, bitcoin is still in a bull market, so a spurt to $ 60,000 is a very likely scenario in the short term, Soshnikov says.
“Bitcoin has established itself as one of the hedging instruments, thus the fear of inflation by investors contributes to the flow of liquidity from the stock market to cryptocurrencies. However, bitcoin is unlikely to rise above $ 60 thousand, for this the market still lacks powerful impulses, ”the expert added.
Recovery and low liquidity
At the moment, the situation with bitcoin is conducive to growth above $ 60 thousand, noted the leading analyst at 8848 Invest Viktor Pershikov. He warned that the recovery of the asset to this level will take time, since during the holidays on the crypto market there will be low liquidity.
“My main scenario is to reach a new all-time high for bitcoin on the horizon of two months, so the current prices look optimal for purchases,” the analyst explained.
Pershikov also added that he does not see negative factors that could provoke a decline in the bitcoin rate in the coming weeks. On-chain metrics indicate a steady demand for bitcoin and a decrease in the volume of cryptocurrency on exchanges, and the fundamental situation in traditional markets encourages demand for assets that can be protected from inflation, Pershikov explained.
Investing in bitcoin and other cryptocurrencies at current prices, you need to be prepared for the fact that in the first days of next year, regulators may make tough statements on the regulation of the crypto market, the analyst warned. According to him, this will increase market volatility.
“Therefore, I recommend hedging Bitcoin purchases at current prices with put options with strikes at $ 40K or $ 42K, which have fallen in price over the past couple of days and are a profitable insurance against a sudden price drop,” added Pershikov.
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