Bitcoin and altcoins are setting new lows, but experts believe that the limit has not yet been reached and the market recovery will have to wait.
After a minor recovery, the bitcoin rate fell back to $ 5800. Digital gold was followed by the rest of the cryptocurrencies, which lost 5–8%. One of the possible reasons analysts call compensation from the crypto exchange Mt.
Gox, whose defrauded users received 36 thousand BTC and 34 thousand BCH within a few months. Many of them immediately rushed to sell the received coins..
Japanese economist Yukio Noguchi believes that the downtrend began immediately after the launch of bitcoin futures, which actually impede its growth. In addition, news of successful cyberattacks has regularly appeared recently, forcing many companies to introduce KYC, and regulators — tighten control.
BitCryptoNews decided to ask leading experts what investors should expect from the market. Andrei Grachev, vice-president of RACIB for trading, believes that although a partial recovery should take place in the near future, the minimum will be reached only in the fall. According to him:
«There is one final movement missing, which will happen in the near future. According to TA and mathematical expectations, the market movement is incomplete, and in the near future we will see a reversal».
He predicts that the exchange rate will fluctuate a little more in the $ 6,000 range.–6,600 thousand, and then, depending on the level of panic, purchases and sales, with a high probability, it can fall to $ 4,700–4800. Strong and sharp impulse is expected, as there is a pattern of falling acceleration on the chart. Two weeks after that, there should be a rebound to about $ 5600, when either people begin to gradually get rid of their purchases and we will slowly descend to the level of $ 3500, or an increase to $ 7000 begins.–8000. Ultimately, the market will return to «bearish» trend, and only after reaching the bottom (about three months later), it will gradually start to climb up.
You Can’t Make This Stuff Up!
However, Pavel Shchipanov, head of the ICBF analysis and research group, gives a more positive assessment of the prospects for the crypto market. He notes that there is now a lot of positive news, thanks to which the decline could end very quickly. Cancellation of the ban on advertising on Facebook, discussion by the Chinese authorities of the introduction of licenses for working with virtual currencies and the conduct of ICO. In addition, if the SEC gives the go-ahead for the launch of cryptocurrency ETFs on exchanges, then we should expect an influx of trillions of dollars and massive purchases of leading coins..
The expert says that now the completion of the formation of the pattern can be noted on the Bitcoin price chart «wedge», from which the price usually breaks up. If the rate continues to decline, then it will meet resistance at the level of $ 5300 and $ 5000; if this level is held for several weeks, the number of those who want to make money on growth will quickly increase and the price will start a slow upward movement. Although we will not see last year’s rates, by the beginning of autumn the MTC rate will be able to reach $ 10–12 thousand.
Pavel Shchipanov recommends thinking about the start of purchases now in order to prepare «sleigh in summer».
Recall that «In contact with» launched its own payment system.
text: Ivan Malichenko, photo: Shutterstock, chart: TradingView