For a day, the cost of bitcoin increased by 7%, to $ 5500. But the risk of another fall and renewal of lows remains, despite the positive long-term forecasts of the asset rate

On Thursday, March 19, the average market value of Bitcoin reached $ 5500, over the past 24 hours, the cryptocurrency has risen in price by 7%. At the same time, the price of Ethereum rose by 8%, to $ 121, the XRP rate - to $ 0.148, by 4%. All of the 20 largest digital money by capitalization, in addition to the Tether and USD Coin stablecoins, are in the green zone. The total value of the blockchain industry over the past day has grown by $ 6 billion, to $ 155 billion with trading volumes of $ 127 billion.

Fundamentally, there are no prerequisites for a further fall, I'm sure Exante managing partner Alexei Kiriyenko. He recalled that over the past six days, Bitcoin has consolidated around the level of $ 5,000, the main reason for this is the insecurity of investors that the asset “found” its adequate minimum.

“Nobody wanted to buy out a dead cat’s jump, investors were waiting for the situation to develop,” Kiriyenko noted.

Last week, March 13, the value of the first cryptocurrency fell sharply to $ 3800, after which it almost immediately returned to the level of $ 5000 and reached $ 5900. The fall occurred amid yet another sharp decline in the stock market and the cost of Brent crude oil. However, in recent days, bitcoin has ceased to duplicate the negative dynamics of stocks or raw materials, staying in a certain area.

“We can cautiously assume that the current growth has reason to turn into a rebound. Altcoins also sold out on a massive scale, current price levels may turn out to be attractive for new investors as well as for those who have taken profit earlier, ”the specialist explained.

Leading analyst at 8848 Invest Viktor Pershikov added that at the moment there are three reasons for the local rise in the price of bitcoin:

The pressure on the Bitcoin exchange rate was eased by market participants who were selling cryptocurrencies on a massive scale. According to Chainalysis, between March 12 and 13, BTC inflows to the market were 9 times higher than average, with two-thirds of this volume being sold, resulting in a rapid drop in prices. Currently, the volume of bitcoin inflow to the market is only two times higher than average values ​​(52,000 BTC), which allows the price to adjust to the area of ​​$ 5700-6000.
New customers come to the market. Another round of $ 700 billion QE (quantitative easing policies) launched by the US Federal Reserve the other day is a fundamental reason for the medium-term price increase for leading cryptocurrencies, as part of the "fresh dollars" through institutional investors may be in the cryptocurrency market. Given its low capitalization, even small investments of $ 2-3 billion can provide significant support to the exchange rate.
In recent days, there has been an increase in demand for bitcoin by Chinese market participants, who can soon recover from the consequences of COVID-19, and prefer to buy cryptocurrency significantly sagging stock market, which so far does not show signs of recovery.
“Technically, by the end of March, I observe the possibility of a local drop in cryptocurrency prices after a short recovery due to the fact that classic markets have not reached their bottom. Until the market reaches the level of $ 3,500 in bitcoin, the risks of decline remain, therefore, in the case of cryptocurrency purchases at current prices, I recommend being prepared for local drawdowns. Market prospects in the 2-3 quarter of 2020 seem positive to me, ”concluded Pershikov.

Now the dollar quotes are 81 rubles., Euros - 87. A barrel of Brent crude oil is being traded at $ 25.7, and Russian Urals - at around $ 19, the lowest since 2002. The situation remains extremely unstable even despite the fact that the Bank of Russia has begun additional sales of foreign currency on the domestic market in order to stabilize the dollar against the ruble.

In addition to the “oil war” between Russia and Saudi Arabia, the situation is complicated by the spread of coronavirus. A pandemic has a negative impact on the value of shares in major companies and state economies. And just a week ago, quarantine pressed on the rate of Bitcoin and other digital coins. However, perhaps in recent days the situation has fundamentally changed. And now cryptocurrency will again try to win the title of defensive asset. But no one guarantees that before the new wave of growth, it will not update multi-year lows, and the BTC price will not fall below $ 3800.