What will happen next? Bitcoin fell to $ 4500
The situation in the digital money industry continues to deteriorate every day. The editors of RBC-Krypto found out how the situation will change in the near future, and how low the rate of the first cryptocurrency will fall.
On Tuesday morning, November 20, the average market rate of Bitcoin set the next annual minimum of $ 4,500. During the day, the price of cryptocurrency decreased by 16%. During the same time, XRP fell by 10%, to $ 0.42, Ethereum - by 15%, to $ 134. Since November 7, the market capitalization of the blockchain industry has fallen by 35% - from $ 220 billion to $ 144 billion.
Alexey Markov, a technical analysis expert and lead trader at United Traders, believes that this situation was quite expected. According to the expert, the cost of Bitcoin and Ethereum will continue to fall, after which they can be purchased at a bargain price.
“The exhausting side flat has finally passed into the acute phase of a fall. I am very pleased with the fact that we are falling without any specific news, people are not ready and will start to make mistakes, which is what the big players are waiting for. I think the fall is not long: Bitcoin to $ 3,500- $ 3,700, Ethereum - to $ 110- $ 120. These levels will be attractive for purchases, but it is important to buy only after consolidation and stabilization of volatility, ”said Markov.
The main analyst of Teletrade Group Oleg Bogdanov did not agree with him. The specialist listed the events that affected the deterioration of the situation in the cryptocurrency market.
“The reason for the collapse in recent days was the decision of the US Securities and Exchange Commission (SEC) on the ICO and the conflict over hard forks Bitcoin Cash, which caused serious problems with the pricing of this cryptocurrency. On the platforms for trading with digital money, there were problems with the withdrawal of funds, which further undermined investor confidence in this type of instrument, ”Bogdanov says.
He stressed that the cryptocurrency market is entering a period of complete disintegration. Many digital assets lost more than 80% of the price this year, so investors lost all sense in investing, the analyst believes. In his opinion, the price of bitcoin will tend to $ 1,000, and the cost of altcoins will be nil.
Also, the fall in the price of cryptocurrency was affected by the improvement of the situation on the world stage, says leading analyst of Expert Plus LLC Maria Salnikova. She is sure that all the money has been withdrawn from the blockchain industry.
"After reporting on the readiness of the US Federal Reserve to revise the monetary policy in 2019 (that is, the Fed's hawkish rhetoric will change to pigeon), the United States said it would not prevent the new Prosecutor General from deciding to curtail the investigation of possible Russian interference with the US US down (not falling and sales of the dollar, but a logical correction) - there was a reason to leave the cryptocurrency market, ”said the specialist.
Mikhail Mashchenko, an analyst of the social network for eToro investors in Russia and the CIS, called the main reason for updating the annual minimum of Bitcoin, investors' desire to make money in the market, the volatility of which has significantly decreased. The expert suggested that the asset price could drop to $ 4,000.
“In the current environment it was much easier to send quotes down, not up, since interest in cryptocurrency dropped noticeably. There was no fundamental news for a long time, and the turmoil around BCH hard forks, the departure of miners from Bitcoin and the subsequent drop in complexity on the network all contributed to the price going beyond the level of $ 5800 - $ 6000. The fall of the rate to the $ 4,750 mark was expected, and now without active purchases of “whales”, it may well fall to $ 4,000 for a coin, ”Mashchenko is sure.
Despite the current situation in the industry, the President of the Singapore Castle Family Office Eldiyar Muratov believes in the future prospects of cryptocurrency. According to the expert, the problems of the market will be solved in the near future, and more and more banking institutions invest in digital money and create a reserve for the future.
“If the voltage does not subside, then Bitcoin will trade below $ 5000 for a sufficiently long period of time. The closest corridor in question is $ 4369 - 4987. The main stop factors for investors are speculation and the lack of regulation of this market. The issue is gradually resolved. Now the market is being prepared by corporate investors for the future rise of the industry through underwater speculation. Probably this year we will see a repetition of December 2017, ”said Muratov.
Most experts believe that this decline has several main reasons, and the course of Bitcoin will continue to fall in the near future. Analysts believe in the prospects of the digital money market and call such a decline in the value of assets a profitable opportunity to buy.
Eldiyar Muratov for RBC