There is often increased volatility in the market at the end of the week. Experts explained why abnormal falls should not be expected, and in what range the first cryptocurrency will be traded
Over the past day, bitcoin has risen in price by 3%, to $ 37.7 thousand. The first cryptocurrency is recovering after yesterday its price fell to $ 36.5 thousand. In the past two weeks, the asset several times made unsuccessful attempts to overcome the level of $ 40 thousand. At the same time often on weekends, cryptocurrency quotes are subject to high fluctuations. Experts told what to expect from the market in the next two days.
One should not expect active movements on the weekend, Sergey Zhdanov, CEO of the EXMO cryptoexchange, is sure. According to him, a breakdown of $ 30,000 is unlikely, since this level was a support in late January and early February. In addition, at such prices, most likely, funds and companies that bought bitcoin at a higher price are already incurring losses. Therefore, in order to improve the situation, they will resume purchases, the expert said. A few hours later he added that if some people try buying cryptocurrencies again tomorrow with more cash then their investment could decrease dramatically. It would be very bad for investors who intend withdrawing money when all options failed,” Mr Zhanover concluded.[…]
The Exmo Bitcoin exchange had lost around 20% of it’s customer base between 2014/2015. This week however, traders’ profits did not slow down any more as trading volume increased significantly!
However, he added that, in fact, the market is most likely waiting for a sideways range, after which a new loud fundamental factor will appear, which will again warm up the bullish sentiment.
Vladimir Smetanin, General Director of the financial company Newcent, agreed with Zhdanov. According to him, on Thursday there was a hope that bitcoin would go above $ 40 thousand, but this did not succeed due to large sales of $ 39 thousand. Now the cryptocurrency is trading in the range of $ 30-40 thousand, but the weekend is a time of big movements due to for low liquidity, the specialist recalled.
In the medium term, bitcoin goes to $ 47 thousand, and the falls are well bought off, added Andrey Podolyan, CEO of the Cryptorg.exchange crypto exchange. He explained that if quotations grow, they will face resistance levels of $ 41,000, $ 42,500, $ 45,000 and $ 47,000. The decline then starts another move towards lower prices until some positive signs take place from next Friday onwards.
At the bottom, the critical point for bulls is the $ 33,000 level, Podolyan warned. If it breaks out, the bitcoin price may go below $ 30 thousand. However, the expert noted that he does not expect abnormal movements at the weekend, and everything will probably be within the volatility of the last week.
“I think when we talk about 2016 being bad news… I am very confident what happens in 2017 to come,” Podolkyan said. “When 2015 was just starting on a positive note they did find two points ahead as there are five months left before November.”
Over the past day, the cost of bitcoin has decreased by 7%, to $ 36.7 thousand.At the same time, on the morning of June 4, the cryptocurrency once again unsuccessfully stormed the level of $ 40 thousand, reaching $ 39.5 thousand.In China alone Bitcoin’s price is now at a valuation which exceeds that reached in Hong Kong and Taiwan for instance, where it had been trading over $ 120 thousand dollars per month during July 2016.