Bitcoin will fall, investors took profits before the weekend
Stock Markets Group – bitcoin exchange Rate will decline, as investors cut positions ahead of the weekend. In the course of the day, the cryptocurrency has risen above 11 thousand dollars, but buyers failed to hold the level.
At the moment the price of bitcoin continues to fall. Experts attribute the decline in prices with the new risks which may affect the dynamics of the asset in the next week.
Many have noted a sharp decline in trading volumes and transactions on bitcoin that shows a decline in investor interest in the cryptocurrency.
However, bill Wagner, one of the founders of the investment Fund “Step&Run” noted in his commentary Stock Markets Group, what to speak of the fall in global demand for cryptocurrency yet.
“The period when the risk of falling Bitcoin prices were high has passed, but the market still have those players who have not used this chance to shop. They are out of the market and do not open new positions. Many speculators after the new year went to other altcoins forever, which also has reduced activity in bitcoin and capitalization most popular cryptocurrencies”
“However, I would not hurry to talk about a return to the previous sales. Even if today the cryptocurrency will not find substantial support, she can stay above the psychological level of 10 thousand dollars, as in today bitcoin has a large capital and it is still the first by market capitalization among cryptocurrencies”
The recent fall in the asset to $6 000 was due to several factors:
– The desire of the Chinese authorities to take control of the cryptocurrency market
– Lack of understanding from the regulators as to prevent the schemes of money laundering
Technical problems that caused difficulties in the network blockchain, and therefore alienated potential investors from bitcoin as a tool of earnings
– High risk of fraud schemes and as a result of loss of investors ‘ funds
Today the market has changed, so some of the risks faded into the background.
However, those trading cryptocurrencies noted that the bitcoin exchange rate became more predictable and volatility is much reduced, which is a sign of the formation of stable market conditions.
The bitcoin exchange rate and experts
Bank of England Governor mark Carney urged not to ban bitcoin and cryptocurrencies and regulate their standards.
The statement of the head was made at the Scottish economic conference. According to Carney, the cryptocurrency now do not threaten financial stability, as many believe, but it can happen, if the market stays unregulated, and a number of market participants grow.
In his opinion, it is time to accept the cryptocurrency part of the global financial ecosystem and to begin to apply the laws as in other financial markets.
Sheila Peyton, former Chairman of Federal Corporation on insurance of contributions of the United States, believes that bitcoin has no value as well, and the us dollar today.
In an interview with Barron’s, she said that despite the lack of intrinsic value of cryptocurrencies, they should not be banned.
Concerns of regulators about high volatility and speculation, exaggerated because you just need to give the market to balance supply and demand.
Peyton believes that authorities should focus on the disclosure of shadow schemes associated with the bitcoin, thus eliminating the use of cryptocurrency in fraudulent schemes.
Forecast bitcoin exchange rate
There is a high probability of cryptocurrency over the weekend. Approaching close to $11 000 bitcoin price is experiencing difficulties in continuing the growth. However, while the asset value is above $10 000 decline is not strong.
Bitcoin will continue to rise, and the price will tend to overcome the cloud of Ichimoku indicator. In this case, the first major target is at $12 500, where a strong resistance and upper border of the cloud indicator. This development will probably only under condition of the level crossing $11 000 and consolidate above.
The negative scenario
Most likely now looks to stop the growth of bitcoins and a small pullback to the level of $10 000 where extra support is the moving average. In the current situation, the reasons for sharp fall as there as well, and for growth.
Most likely today is the movement of Bitcoin into a sideways trend between $10 000 – $11 500.
Market analyst cryptocurrency
Stock Markets Group™