Over the past three days, the bitcoin rate has grown by more than $ 6 thousand. As of June 11, 17:20, the first cryptocurrency is trading at $ 37.5 thousand. The asset is recovering after a drop in quotations to $ 31 thousand on June 8, writes RBC Crypto.
Positive news contributed to the growth of the asset value. For example, Microstrategy company announced about plans to buy bitcoin for another $ 500 million. To do this, she issued bonds maturing in 2028.
Also, the crypto community positively reacted to the news that El Salvador recognized Bitcoin as the official currency. Head of State Nayib Bukele instructed to start mining cryptocurrency using the energy of volcanoes. Even the International Monetary Fund reacted to this event, which reported that there were problems in recognizing a digital asset as a means of payment.
Despite this, it cannot be said that the news background has improved greatly, says Maria Stankevich, Development Director of the EXMO crypto exchange. In her opinion, the news from El Salvador cannot be considered positive.
“El Salvador does not have any national currency of its own, and the decision to accept bitcoin as a means of payment was dictated solely by the convenience of transferring money for migrants,” Stankevich said.
El Salvador accepted bitcoin as a legal means of payment on a par with the US dollar, but restrictions on cryptocurrencies in China and the United States, which the crypto market is currently targeting, are of greater importance, added Yuri Mazur, head of data analysis at CEX.IO Broker.
An increasing number of provinces in China are banning mining. On June 10, Qinghai Province did it. Similar rules are already in force in the Xinjiang Uygur Autonomous Region. This is due to the fact that at the end of May, Vice Premier of the State Council of the People’s Republic of China Liu He called for tougher regulation of the crypto market.
“Therefore, investors are taking a wait and see attitude, not letting Bitcoin into either a bearish correction or a bullish trend – market participants are consolidating the asset in anticipation of movement triggers. Of the positive triggers – the ETH network update, while negative triggers, as a rule, are unpredictable and can appear at any time, ”Mazur warned.
While it is impossible to talk about the end of the correction, says the CEO of Xena Financial Systems Anton Kravchenko. According to him, the rate of decline has slowed down, but to reverse the movement, strong fundamental news is needed, which is not yet available. The risk of falling below $ 30 thousand remains, but on the other hand, the “overheating” left the market, the expert emphasized.
EXMO Development Director agreed with him. She also believes that the correction continues, but the value of bitcoin is unlikely to fall below the support level of $ 30K.
“We are inclined to believe that the BTC supercycle is still somewhere in the middle of its journey, which should end closer to 2023. Based on this, the probability of renewal of the historical maximum is high, ”Stankevich warned.
If bitcoin ends the week at a price below $ 30 thousand, we can talk about the beginning of a bearish trend, and quotes may still drop to $ 20-25 thousand, warned the head of the data analysis department of CEX.IO Broker. He concluded that while Bitcoin fluctuations are limited to the level of $ 35-40 thousand, but there may be surges by $ 5 thousand above or below this range.