Bitcoin rally is running out of steam, correction could be up to 30%


Bitcoin set a new all-time high above $ 28,200 on Sunday. And again, for the second day in a row, the first cryptocurrency broke two round levels in one day – $ 27K and $ 28K.

Over the past two weeks, BTC has added almost $ 7,000. Some experts do not exclude a 30% rollback of Bitcoin in the near future.

Against the background of the growth of bitcoin, there was a massive liquidation of the positions of traders trading with leverage. According to bybt.com, over the past 24 hours, market participants lost almost $ 580 million. In total, exchanges liquidated positions of 58 thousand users, the loss of one of them exceeded $ 10 million, writes RBC.

The capitalization of the first cryptocurrency on Sunday exceeded the $ 500 billion level. Market participants are waiting for Monday to see how Bitcoin will behave. The current rally occurs over the holiday weekend amid reduced trading volumes, ttrcoin writes.

“Models are not needed to evaluate Bitcoin. You need to understand the dynamics of supply and demand. Supply will always decline. Demand is growing exponentially due to macroeconomic conditions that will persist for the foreseeable future. There is no maximum, ”said well-known analyst Alex Kruger.

“It looks like bitcoin may still move higher, but the move is starting to take the shape of a parabola,” writes analyst Josh Rager. “I think we can see $ 30,000, but the pullback and sideways trend will eventually come for a few weeks.”

“Vertical movements usually end in quick corrections. Remember summer 2019? These quick corrections are needed to establish the range in which the consolidation will take place. Don’t let yourself be knocked out for correction. The bull market will continue for a longer period, ”said analyst Michael van de Poppe.

One of the traders tweeted that bitcoin is approaching its peak. The rally is running out of steam, most likely in the next 4-5 weeks we will see a 30% drop in BTC.

According to the analyst’s forecasts, the market correction will lead to a pullback to $ 19,000 – 20,000. The shortening of the period of consolidations and ups of the coin became an alarming signal.

The WhaleMap team, which monitors the behavior of major players, came to the conclusion that the whales were buying bitcoin at $ 19,000. This factor was one of the key drivers of the December rally.

  • What is cryptocurrency? Everything a beginner needs to know about coins in one book. Read for free

Market forecasts, analytics and stock news

Libertex [CPS] WW

xemarketsforex

xemarketsforex

MTP Procurement Management Procurement Bidding SRM Cost Optimization Team Management Cost Management SAP ERP Management Skills SAP ERP 1C Supply Control SAP / SRM SAP / R3 Analytical Thinking Working with Suppliers Result Oriented System Thinking Process Management Strategic Planning Project Management MsOffice Negotiations with company top officials Organization of procurement procedures Oil trading

Read Previous

Week on the market (28.12 – 03.01): New Year’s calm | R Blog RU

Read Next

Gazprom share price today: forecast and technical analysis