Why did the price of bitcoin bounce?

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Bitcoin has risen in price by 8% in a day. The rate of the first cryptocurrency again reached $20.35 thousand. As of September 27, 14:00 Moscow time, it is trading at $20.1 thousand. The cost of bitcoin began to grow rapidly on the night of September 27. The cryptocurrency is recovering in price after it updated the local minimum at $18.1 thousand a few days ago.

The experts told RBC-Crypto about the reasons for the rise in the price of bitcoin and gave forecasts for its further dynamics.

Temporary restoration

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There are no objective reasons for the growth of bitcoin now, says Artem Deev, head of the analytical department at AMarkets. According to him, most likely, investors bought out the drawdown, which contributed to the technical rebound of bitcoin after the fall last week.

As before, for the cryptocurrency market, the decisions of world regulators on rates, which will only increase, are of primary importance, the expert believes. He explained that information on inflation in the Eurozone and the United States, as well as signals about the onset of a recession in the developed economies of the world, will expectedly lead to new falls in bitcoin and, following it, in other currencies.

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“Most likely, the observed recovery is temporary. As important economic information arrives, which is not expected this week, the coin is likely to decline again,” Deev believes.

Price band

The current growth of BTC is not related to fundamental reasons: the asset just continues to trade in the $18-25 thousand corridor, from the boundaries of which there are movements up and down, said Viktor Pershikov, a leading analyst at 8848 Invest. He clarified that the current growth of bitcoin can occur up to the upper limit of the designated range.

In general, the asset continues to accumulate conditions for the formation of a bottom, but it will be possible to say that a bottom has been formed on BTC only if it breaks and consolidates above the level of $24,000, the analyst believes. He did not rule out another update of the annual minimum at $17.6 thousand.

“But if bitcoin does not lose significant price by the end of September, we can expect growth in the fourth quarter of this year with the goals of $30,000 and $35,000 per BTC,” Pershikov suggested.

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Source: Cryptocurrency

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