Bitcoin: Do not be bothered by a "false" drop

The first day for bitcoin as the national currency of El Salvador was marked by a drop. But this, apparently, does not frighten analysts. And from a technical point of view, everything doesn't seem that terrible yet.

During the collapse, the price returned to the sideways range of 46,299.48 - 50,513.53. The breakdown of its support is still false, although the penetrating shadows are large enough.

If the 46,299.48 level holds, then the price is likely to recover all losses. But it is not yet known how soon this will happen.

Meanwhile, industry experts consider Tuesday's drop in the cryptocurrency market to be "false." And they confirm their forecast for the growth of bitcoin to $100,000 by the end of the year.

In its new report, Standard Chartered indicated that the main cryptocurrency will reach $100,000 "in late 2021 or early 2022," which will be accompanied by a huge jump in Ether prices.

The research team stated that Ether is "structurally" priced at $26,000- $35,000, which is 10 times its current price, but for that to happen, BTC must reach $175,000.

And regarding the collapse, Nick Spanos, co-founder of Zap Protocol, noted: "Large financial organizations and the media say that this is because there was a difficult introduction of bitcoin in El Salvador. I'm in El Salvador right now, and everything looks amazing. So, we have a president who opens up new opportunities, as a chief executive officer, introducing innovations. He believes in it: he bought the fall, as everyone should."

In the midst of the fall of bitcoin on Tuesday, the president of El Salvador wrote that he was buying the bottom, acquiring the bitcoins necessary for the country.

For the bitcoin futures market, the fall turned into a mass liquidation of longs. About 92% of all long positions on the cryptocurrency were liquidated on Tuesday after the price fell to $43,000. In parallel, more than 376,000 trading accounts were liquidated.

At the same time, Alameda Research Co-CEO Sam Trabucco noted that it happened almost like a clockwork. Similar data for futures premiums and open interest preceded the previous cryptocurrency crash.

According to experts, in total, more than 376,000 individual trading accounts suffered from the "bloodbath", forced closures were observed on many exchanges - from Binance to FTX and Bitfinex. A move of this intensity was previously seen in early 2021 when Bitcoin and other cryptocurrencies reached their all-time highs, which came as an unexpected shock to some.

What's next? We are monitoring the level of 46,299. 48. If it holds, it is possible to recover to the level of 50,513.53. It will not stand – it is possible that a fall to a strong mirror support of 41,980. 24 will follow. But as long as the price is above it, the prospect of growth to the historical maximum does not lose relevance.


The material has been provided by InstaForex Company -