The leading digital currency is experiencing serious volatility. This happens after a kind of "roller coaster", when the price for a short period of time sharply rises and falls. The number one cryptocurrency did not escape this fate and alarmed the market participants.
Bitcoin happened to experience this in 2017, when ups alternated with falls, and then there was a collapse, which led to stagnation. At the moment, there are no such "swings", but BTC had to endure a sharp drop in value. At the beginning of the week, the leading cryptocurrency rose from $7400 to $10,500 per coin. The reason for the rise in prices was news from China. According to a statement by Chinese leader Xi Jinping, the country plans to increase investments in blockchain technology and cryptocurrencies based on it, bitcoin in particular. It is expected that the introduction of new technology will increase the availability of loans for small and medium-sized businesses.
On Tuesday, November 5, BTC tried to overcome an important psychological barrier at the level of $10,000 per coin. Attempts ended in failure. For most investors, this level is a key indicator. Exceeding this threshold will open the leading cryptocurrency road to new heights, experts said. A rise above $10,000 will mean that the digital flagship has potential for growth, and failure to break this bar is fraught with significant losses. If a negative scenario develops, experts expect massive disappointment of investors, which will result in large-scale bitcoin sales.
Experts pay attention to the technical indicator of global strength (GS Indicator), created specifically for Bitcoin. According to the results of October 2019, it showed large-scale growth, approaching 70 points. According to analysts, this indicates the overbought of bitcoin. Consequently, in the near future, a drop in the price of BTC is possible. A similar situation was observed in August 2019, when about $12,000 was given for a digital asset, while the indicator showed overbought. As a result, Bitcoin fell by $2000 within two weeks.
Currently, all the forces of the main digital asset are aimed at maintaining their previous positions. However, the number one cryptocurrency almost does not succeed in implementing its plan. On Wednesday afternoon, the leading virtual asset showed good results, rising in pair with the dollar to $9,404.
In the future, the BTC/USD pair began to roll down the hill, falling to $9370 per BTC. The downward movement did not stop there.
The downward trend has gained momentum. Bitcoin tried to find the low, dropping to $9,331 per coin. Later it managed to push off and go up.
At the moment, the leading cryptocurrency is trading within the range of$ 9350–$9351 and seeks to break into the kings as much as possible. Bitcoin has always tended to deny restrictions, but now it has to act within the existing price framework.
At the moment, the leading cryptocurrency is trading within the range of$ 9350–$9351 and seeks to break into the kings as much as possible. Bitcoin has always tended to deny restrictions, but now it has to act within the existing price framework.As the number one cryptocurrency grows in popularity, its future value becomes the subject of a huge number of forecasts. They are very diverse and extremely controversial. Many economists, such as Nuriel Roubini, believe that within five years the price of bitcoin will drop to zero, and crypto enthusiast John McAfee, on the contrary, puts on the growth of BTC to $1,000,000 by the end of 2020. Analyzing the dynamics of the leading cryptocurrency since its inception in 2009, experts note the pronounced cyclical nature of the rise and fall of its price. Most analysts are confident that the main digital asset will be able to withstand serious disasters. They focus on the enormous potential of BTC, the vector of which is aimed more at growth than down.
The material has been provided by InstaForex Company - www.instaforex.com