Over the past day, bitcoin has fallen in price by 16%, to the current level of $ 38.2 thousand. Altcoins have suffered even more. Over the past 24 hours, the price of Ethereum fell by 24%, to $ 2.6 thousand, Binance Coin – by 25%, to $ 39, writes RBC Crypto.
An active decline in quotations of digital assets began on Sunday, May 16. Then Elon Musk criticized Bitcoin, and rumors appeared on the network that Tesla was getting rid of its savings in cryptocurrency. Despite the fact that the next day Musk denied the information about the sale, the market situation remained volatile.
The final decline came after it became known on May 18 that Chinese financial institutions were banned from providing services related to cryptocurrencies. The corresponding statement was issued by three financial regulators that oversee online financial transactions, the payments market and clearing.
All negative statements appeared at about the same time, which may indicate manipulation by large players, suggested Andrey Podolyan, CEO of Cryptorg.exchange. According to him, this can be done so that retail investors sell their cryptocurrency to “whales” at a favorable price.
“I think that below $ 40K for Bitcoin and $ 3K for Ethereum there will be very large purchases. Most likely, next week bitcoin will return above $ 40 thousand, and ether – above $ 3 thousand. And positive news will begin to appear, ”Podolyan said.
While we are in a bullish cycle associated with last year’s halving (halving the miners’ reward), added Nikita Zuborev, senior analyst at Bestchange.ru. He noted that based on the retrospective of the market, there should be at least another 4-5 months of the global bull cycle in stock.
Large funds are ready to keep their long positions open as long as bitcoin is trading above $ 32,000, Zuborev says. He called this a key mark for the market at the moment. As long as bitcoin remains above $ 32 thousand, the correction is of a local nature, the expert concluded.
“Most likely, we are already near the minimum values of this correction and in the near future the decline will stop,” Zuborev predicted.
Mikhail Karkhalev, financial analyst at Currency.com, agreed with him. He stressed that a potentially strong level of support for Bitcoin is $ 40 thousand. It is likely that a rebound may begin from this point, the specialist explained.
“A rebound can begin at any time, as soon as the bulk of market participants consider the price of bitcoin attractive enough for purchases,” said Karkhalev.
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