Bitcoin is trading near the psychologically important mark of $20,000 on Monday after the fall of the cryptocurrency rate on Saturday to the lowest level in 18 months.
According to CoinDesk, the price of bitcoin at 11:35 Moscow time is $20444. On Saturday, it fell to $17,630, but on Sunday it bounced back above $20,000.
Last week, during which the Federal Reserve System (Fed) raised the base rate by 75 basis points (bp) at once, turned out to be quite volatile for the cryptocurrency market, and experts believe that the current week will also be difficult, writes Market Watch.
“We may be out of the bottom of the market if bitcoin can quickly rise above $20,000 and hold there on Tuesday-Wednesday,” said Winnie Langham, chief executive officer of streaming platform Waitroom. become a tough resistance level.”
Bitcoin has fallen 57% since the beginning of the year, and its fall from the November peak of $69,000 is about 70%.
While some analysts see the beginning of a new “crypto winter” that will eventually end, others believe that the current downturn in the cryptocurrency market could mean the end of the industry as a whole.
The ethereum exchange rate, which also fell sharply on Saturday, rose in price by 15% over the past 24 hours, to $1113.28.
Two days earlier, market expert Igor Stakovichenko, responding to a request from Open4Business, said that in the current situation, the fall of the bitcoin market below 22,000 launched a new, even deeper “bearish phase” of the cycle, as it greatly shook the position of long-term holders of the asset. The long-term holders, who had held their positions during the last drops, could not stand it and started dumping the cue ball at the lowest prices.
“This shook the entire structure, and both technical and macroeconomic indicators today indicate a possible fall in the main cryptocurrency to 16,000 or even lower,” the expert said.
However, according to Stakovichenko, it is too early to bury bitcoin, as “whales” (investors owning more than 10,000 BTC) continue to accumulate this digital currency, which may indicate the possibility of growth in the medium and long term. In addition, the expert predicted possible stabilization and even some growth of the world’s main cryptocurrency.