On January 11, Bitcoin interrupted a series of updates to the highs in value with a sharp drop. From a record $ 41.9 thousand, recorded on January 8, it fell to about $ 30 thousand. Now the first cryptocurrency is traded at $ 32.4 thousand, over the past day it has lost 16% of its value. At the same time, the Ethereum rate, after reaching a three-year peak, fell to $ 926 thousand, to the current moment it is $ 969 thousand, according to RBC Crypto.
In recent hours, after trading in Asia, there has been a gradual recovery in the price of bitcoin and the entire cryptocurrency market, explained the co-founder of the EXMO exchange Ivan Petukhovsky. According to him, the drop in quotes observed over the past day may turn out to be only a small local breakdown downward, that is, it will not interfere with further growth.
“In the near future, even if bitcoin drops below $ 30 thousand, it is unlikely that it will stay there for long. Only in the spot market are daily Bitcoin trading volumes at the highest levels ever. They are in no way comparable to the 2017-2018 rally. In addition, we, at EXMO, record a rapid growth in traffic, ”said Petukhovsky.
He added that the optimism is supported by the record growth in trading volumes in the futures and options markets, on the basis of which the current rally can be expected to continue in the medium and long term. In addition, the market is supported by the participation of institutional investors who invest in cryptocurrencies.
Based on the data of search queries (Google Trends), interest in Bitcoin has not yet reached its maximum values, although it has begun to approach them in the last week. One gets the impression that a real rally is only awaiting us, the expert suggested.
“Ether seems to be getting more attention than in 2017-2018, becoming less dependent on the price of bitcoin. The excitement around altcoin will only grow with the approach of the launch dates for futures on CME, ”Petukhovsky predicted.
Alexei Markov, leading trader at United Traders, added that the rally is likely to “subside”, but the growth phase will not end. Markov recalled that cryptocurrencies have always been a supervolatile asset, so one should not be surprised at such “overnight” falls.
“Rollbacks of 25-30% from the highs are always a great opportunity to enter, but now I would wait for confirmation of the strength of the uptrend – a good signal would be a rebound to $ 36-37 thousand in Bitcoin and a protracted consolidation for 2-3 weeks,” he advised trader.
The head of the analytical department of AMarkets Artem Deev looks less optimistic about the near future. He called what is happening on the crypto market not just a correction, but a general drop in cryptocurrencies, which is following the pattern of three years ago, when bitcoin lost more than 70% of its value. The expert is confident that the decline will continue in the next couple of months, then stabilization and a new round of gradual growth will occur.
“In the long term, the leading cryptocurrencies will grow again, and therefore the current situation makes it possible to either fix profits or purchase digital assets for the future when a reversal occurs in the market,” Deev said.
Dmitry Ivanov, the executive director of the Klopenko Group, agreed with him. He believes that Bitcoin has started a downward trend. According to Ivanov, before returning to growth, the value of the first cryptocurrency may fall to $ 6-7 thousand, that is, by about 80% more. But within a year and a half, the bitcoin rate can rise to $ 50-60 thousand, the expert believes.
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