Bitcoin's price is bound to increase, albeit being a "bubble"

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Bitcoin continues to try its best to stay above the level of $ 43,852. The continuation of growth is out of the question now since it looks like the next round of the bullish trend is already done. Therefore, its quotes may rush to the next support level of $ 40,746 in the near future. From our point of view, such a decline will be very logical. We still don't see any good reasons why BTC has increased by $ 20,000 during the past two months, and we also expected the growth to end around the levels of $ 43-44,000 per coin. However, the exchange rate actually rose to $ 53,000, that is, it stopped not so far from its absolute highs. Now, the correction is overdue, and there are no reasons to resume growth.

Meanwhile, billionaire Leon Kuperman urged everyone to be very careful with their Bitcoin investments. He said in an interview that he does not understand the principle of operation of cryptocurrencies, so he stays away from them, and considers gold to be the best means of preserving value. On the contrary, another gold supporter Peter Schiff, said that the rate of the main cryptocurrency could rise up to $ 100,000 and regrets that he did not Buy bitcoin in 2011. The businessman still believes that bitcoin is a "bubble", but at the same time, admits that its value can soar to $1 million. According to Peter Schiff, cryptocurrency will never become a ubiquitous means of payment, and the only sphere for its application is speculation.

Mike McGlone, Bloomberg senior strategist, also gives a favorable forecast. He reiterated that Bitcoin will rise to $ 100,000 per coin and become a global reserve asset. McGlone also said that the "bullish" market for bitcoin has already recovered, so the highs are expected to be updated.

In addition, it is reported that large investors are not currently working on a decline. This is reported by several analytical portals, as well as exchanges. However, the sentiment may change, given how high bitcoin has increased again, and the fact that there are no good reasons for its continued growth.

It can be recalled that most of the forecasts from the category "$ 100,000 by the end of the year" are being considered. No one denies that Bitcoin's price can rise and will most likely do so in the long term. However, two different "bullish" trends in one year is too much. Moreover, there was more negative news for bitcoin than positive this year. In particular, the repression of miners in China and the serious tightening of the legislation on the regulation of BTC in some countries. Moreover, the Fed may significantly reduce or completely cancel the QE program next year, which is the main source of money that flows to the cryptocurrency market. Therefore, in the perspective of the next 1-2 years, we believe that a corrective scenario is most likely.

Technically, there is a clear downward trend in the four-hour time frame. Bitcoin's quotes went below the Ichimoku cloud, the critical line, the ascending channel and the level of $ 46,600. The collapse of quotes on September 7 may be the beginning of a new prolonged declinel. Therefore, the rate is expected to consolidate below the level of $ 43,852 and decline to $ 40,746 in the upcoming days. But if buyers manage to hold Bitcoin above the level of $ 46,600, then the upward trend may continue.

The material has been provided by InstaForex Company - www.instaforex.com

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