The Correction Will Be Temporary. Analysts Believe In Further Growth Of Bitcoin

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On Wednesday, April 21, the bitcoin rate again exceeded $ 56 thousand, but could not gain a foothold higher. Today the cryptocurrency is trading at the level of $ 54.5 thousand, over the past day it has lost 1.5%. The asset is trying to recover after Sunday’s fall by almost 20%, to a local minimum of $ 50.9 thousand, writes RBC Crypto.

“We are in the growth zone”

Vladimir Smetanin, CEO of Newcent financial company:

The reasons for Bitcoin’s decline over the weekend were technical. The market was very overbought, margin positions were opened for more than $ 20 billion at a rate higher than $ 60 thousand. Since liquidity is limited on weekends, as classic markets are closed, market makers take advantage of this, and after the weekend there is a correction. But if we look at the weekly or monthly interval, we can see that we are in the growth zone. It cannot be said that the trend has broken and we are flying down. I think the market will return to its maximum values. If the rate drops below $ 50 thousand, it will be an indicator of the beginning of a protracted correction, but for now it is a technical correction. The demand for the asset persists and it is hardly worth waiting for a further decline.

Now for the growth of the market, it is important to consolidate the rate above $ 58 thousand, but if it consolidates below $ 54 thousand, then we can see a further decline to $ 50 thousand.

Last week’s growth was primarily associated with the listing of Coinbase on Nasdaq, investor interest in this event was high, new money came to the cryptocurrency sphere. The next serious informational reason may be the completion of the proceedings between the American Securities and Exchange Commission (SEC) and Ripple. In case of a positive outcome for Ripple, the market may experience another spurt and highs. If Ripple is recognized as a security, then this will be a precedent that can be extrapolated to any American crypto assets, the SEC may start suing other cryptocurrencies, and such news can have a very negative impact on the market.

«Bitcoin will test the $ 70K mark. ”

Nikita Soshnikov, director of the cryptocurrency exchange service Alfacash

Bitcoin has undoubtedly slipped 20% from its highs, but it is still trading at its highest levels in its history. As usual, once it reaches a certain point, Bitcoin goes into a correction period when investors take profits, but this correction is a great way for other investors to re-enter the asset.

I don’t think cryptocurrency will be able to fall below $ 45K in the coming weeks. Most likely, Bitcoin will stop somewhere around $ 47K – this is the lower support level that I see now. After that, the coin will immediately be bought back up to $ 50 thousand. I also do not see any prerequisites for “crypto winter”. In the next week, the rate will most likely continue to decline, after which in a week it will be able to go up again, having accumulated the necessary support of the “bulls”.

I believe that about $ 50K is a good chance to enter the asset. I admit that within 2-3 months or closer to autumn, bitcoin will test the $ 70 thousand mark.

“Correction in any case will be temporary”

Nikolay Klenov, financial analyst at Raison Asset Management investment company

The Bitcoin situation is uncertain. This can be a regular correction after the next high, associated with profit-taking. For such a volatile asset as Bitcoin, a standard correction of up to 30% is quite acceptable.

However, this could also be the beginning of a more serious fall against the background of the correction in the stock market, which we expect. The positive news in the form of vaccinations and a new support package from the Fed ($ 1.9 trillion) has already been won back. Now the market expects that the Fed will begin to reduce the volume of buybacks of bonds, and in the future – will raise the key rate.

In 2020, we saw a correlation between the stock market and bitcoin – even though fundamentally it shouldn’t be. Perhaps we will see the same correlation this year.

At the same time, the opposite effect is possible in the form of an increase in bitcoin against the background of a fall in shares. For some market players, bitcoin has already become a full-fledged protective tool, “digital gold”.

In my opinion, the bitcoin correction will be temporary anyway. For traders, I would recommend fixing some of the positions, but in the long term, I see Bitcoin at $ 100,000. Its capitalization is still small compared to other types of assets, it has room to grow.

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