Over the past day, there has been a sharp correction in the cryptocurrency market. The bitcoin rate fell by more than 20% – to $ 32.5 thousand, then recovered to $ 35.2 thousand. Ethereum fell in price by 17%, to $ 1.1 thousand, at the moment it decreased to almost $ 1,000. The majority of altcoins showed similar dynamics , writes RBC Crypto.
Currency.com financial analyst Mikhail Karkhalev suggested that a short-term correction has come on the market, and this is an excellent opportunity to buy leading cryptocurrencies by capitalization. Perhaps, soon Bitcoin will again test a maximum of $ 42 thousand, the expert suggested. From his point of view, investors who bought BTC with a prospect for several years should not sell it now.
“Institutional money continues to flow into the crypto market, which is in no way in line with expectations that Bitcoin will soon collapse to $ 15,000, as some predict. The same Grayscale Investments fund notes the growth of interest in bitcoin even of pension funds, which usually adhere to conservative strategies and do not invest in super-risky assets, “Karkhalev said.
Victor Pershikov, lead analyst at 8848 Invest, agreed that the current decline in the BTC price is a local correction after a significant increase, no more. Therefore, it is possible to buy bitcoin at the current levels, since the asset price can rise up to $ 40 thousand, the expert admitted. He clarified that the correction could continue to $ 28 thousand, if this happens, it will be possible to increase the share in BTC.
The analyst added that the current price is optimal for buying top altcoins such as LTC, ETH, XRP. The market in 2021 may continue to grow amid a weakening dollar, the expert explained. According to tradingview.com, the DXY Index, which measures the dollar’s strength against a basket of six leading world currencies, has dropped from 100 to below 91 since May.
“The current decline in cryptocurrency prices is a great opportunity to boost buying volumes. This year, I expect continued growth in market capitalization against the background of such a fundamental component as inflationary risks in the dollar, ”Pershikov predicted.
Andrey Podolyan, CEO of cryptorg.exchange, also called the current decline a correction. But the price could still drop to $ 30,000, he added. Perhaps it will stop at this level, as the first uptrend line passes near it.
Therefore, the trader did not recommend buying bitcoin until its rate falls to $ 29-30 thousand. After falling to this area, a short-term growth is possible, on which it will be possible to earn money, Podolyan said.
Earlier, the chief investment strategist at Bank of America, Michael Hartnett, called Bitcoin “the worst of all bubbles.” He warned that the hundreds of percent rise in the price of bitcoin in recent months may be the result of speculative mania. The expert recalled that such market dynamics preceded many crises in recent decades.
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