Over the past month, cryptocurrency has risen in price by 23%. Soon its price may decline as traders begin to take profits. What is the best moment to buy a coin?
The bitcoin rate has grown by 83% since the beginning of 2020, to the current level of $ 13.25 thousand. Over the past month, the cryptocurrency has risen in price by 23%. Its market share reached 62.2%, although in September the figure dropped to 56.6%. One of the latest drivers of the growth in the price of BTC was the announcement of PayPal that its customers will have the opportunity to buy, sell, store and pay for digital assets in 26 million stores.
In the near future, a correction of the growth of the bitcoin price is possible, as traders will begin to take profits. The head of the analytical department of AMarkets Artem Deev warned about this. Nevertheless, he is sure that over a long period - from three months or more - the rise in price of the cryptocurrency is "quite likely". Several factors support this.
General economic instability caused by the coronavirus pandemic and recession. Because of this, investors are converting capital into defensive assets. It is mostly gold, but bitcoin is strengthening in this capacity throughout 2020.
The cryptocurrency market is becoming an increasingly important factor for the entire global financial system. Financial regulators cannot ignore this, which, in particular, pushes them to create their own national digital currencies.
The pandemic is gaining in scale, countries are introducing new restrictions. This can cause a new fall in national economies and a deepening of the global crisis.
“Against this background, bitcoin may well soar to levels above $ 20 thousand even before spring or summer next year. We can say that cryptocurrency is becoming an asset that will constantly grow. But short-term corrections are inevitable, ”Deev said.
The head of the Six Nines data center, Sergei Troshin, is also positive about the prospects for bitcoin. Until the end of the year, its rate may rise to $ 14 thousand. In theory, it is possible to reach $ 19 thousand, but such growth requires positive events in the global economy or the cryptocurrency industry.
Troshin also warned of a possible correction in the price of bitcoin in the near future. Now the rate is facing a psychological milestone of $ 14 thousand. If the coin rises to this level, there is a high probability that a massive profit taking will begin. However, the fall is unlikely to be deep, a collapse below $ 10,000 is unlikely, the expert said.
Anton Kravchenko, CEO of Xena Financial Systems, advised short-term investors to refrain from buying bitcoin at the current price. After a strong growth in October, a correction is possible, in addition to this, the rate is well above the support level of $ 8,000, expressed by the cost of mining.
In the event of a sharp correction, Kravchenko suggested thinking about buying bitcoin at a price of $ 11,500- $ 12,000.From his point of view, this may be a good moment to invest in BTC for 1-2 years with a goal of $ 17,000.
On October 26, analysts from the American investment bank JPMorgan warned that now is not the right time to buy bitcoin. The coin is overbought and may soon start to fall in price, as investors will take profits. However, in the long term, the cryptocurrency may rise in price by 100-200%, experts say.
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