More fresh money." In which case will bitcoin continue to rise to $50,000?
experts explained the sharp rise in the price of the first cryptocurrency and predicted what will happen to the asset in the near future
On February 7, the price of bitcoin reached $43,000 for the first time since January 20. Over the week, the cryptocurrency has risen in price by more than 13%. At 14:00 Moscow time, the asset is trading at $42.5 thousand. RBC-Crypto experts explained what caused the sharp increase in quotes and what to expect from the cryptocurrency in the near future.
Investors looking for profit
In the current situation, the main driver of the growth of the crypto market is the fears of financial market participants regarding the increase in interest rates in the United States at the March meeting of the Fed, says Nikita Soshnikov, director of the Alfacash cryptocurrency exchange service. In his opinion, such a decision of the regulator will lead to a slowdown in the growth of shares.
“Investors' fear that stocks will end soon has only increased hopes for cryptocurrencies. Roughly speaking, investors are trying to hit the last jackpot in anticipation of a protracted decline in the stock market,” the expert explained.
The growth of bitcoin to $43,000 can be explained by the participation of large capital, says Alexei Yakovlevich, an analyst at Currency.com crypto platform. According to him, when the rate approached the global downtrend, the main trend was broken with the help of big capital, and then traders joined the situation.
“With a high probability, we can say that the bottom for bitcoin has already been found,” the analyst said.
Prospects for Bitcoin
In light of recent events, until mid-March, bitcoin will be in a bullish mood and could theoretically rise in price to $47,000, and in an optimistic scenario, up to $50,000, Soshnikov predicted. In his opinion, the cryptocurrency is not capable of falling below $36,000, as indicated by the order book on crypto exchanges.
“Too many applicants have placed orders to buy bitcoins in the region of $35-36 thousand. So even if a fall occurs, the coin will immediately bounce,” the expert explained.
After growing by 13% in a few days, bitcoin needs to correct, Alexei Yakovlevich believes. According to him, after a local correction, the asset will be able to continue growing to $50,000.
Another scenario
The current growth of bitcoin is associated with a decrease in pressure from selling volumes and a steady increase in buying volumes in the range of $34-38 thousand, Viktor Pershikov, a leading analyst at 8848 Invest, explained. In his opinion, the achievement of $43,000 by the cryptocurrency is nothing more than a correction of the downward movement and does not indicate that the asset is able to continue growing.
“The main scenario for me is the lateral movement of the price of bitcoin in the range of $44-34 thousand, with the prospect of reaching the level of $30 thousand,” the analyst says.
Long-term presence of the cryptocurrency in this range will allow to accumulate enough volume to move on to updating historical highs, Pershikov noted. He explained that for significant growth, bitcoin needs more “fresh money”, which is not so much on the market yet.
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