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The expert warned that the increase in the value of the cryptocurrency does not indicate an optimistic situation on the market, and the risk of another sharp decline remains.
Since November 30, Bitcoin has been trading near the $17,000 mark, periodically exceeding it and dropping slightly lower again. On the evening of December 1, the rate of the first cryptocurrency updated its local maximum at $17.3 thousand, as of December 2, 17:30 Moscow time, it is $16.9 thousand.
The market is gradually starting to recover after the fall in November, said Nikita Zuborev, senior analyst at Bestchange.ru. He explained the current growth by the start of a new local trend, following immediately after the end of the consolidation, which took place over two and a half weeks.
“There are no fundamental reasons for this growth, rather, on the contrary, the market is weighed down by the impending potential bankruptcies of various funds due to the collapse caused by FTX and their subsidiaries,” the expert warned.
According to him, despite the positive trend in recent days, the current situation does not yet look optimistic. If the reasons for the growth are purely technical, then the most likely development of events is a reversal of the local trend in the area of current prices (about $17 thousand) with an amplitude up to the lower limit of the price range established after the fall — $14.9-15.6 thousand, Zuborev emphasized.
“However, if this does not happen and Bitcoin manages to break through the current resistance level, then closer to the middle of the month there is a risk of another sharp price decline, comparable in volume to November,” the analyst concluded.
On November 21, bitcoin updated the two-year low of the exchange rate at around $15.4 thousand.
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