Bitcoin Analysts Explain Why Price Is Rallying Again

In letter

  • Bitcoin is on the rise today after a slump earlier this week.
  • Analysts say this may be taken for granted.

Bitcoin has a good day: after that some turbulence earlier this weekIn the past 24 hours, prices have increased by around 6%. It is priced at $ 17,684 down from $ 16,800 yesterday.

Bitcoin appeared to be on track to break its all-time high on Monday and Tuesday, but fell on Wednesday night. Industry analysts said Decrypt that this drop in prices had to do with nervousness in the market.

“The all-time high is a huge psychological barrier – it takes real momentum to get over it,” said Jason Deane, bitcoin analyst at the blockchain analytics firm Quantum economy.

What is good for bitcoin is usually good for altcoins: XRP is currently over $ 0.60and Stellar moved earlier this week; It’s gone up almost 100% in the past seven days. On November 23, XRP passed the $ 0.50 mark for the first time since 2018.

Eric Wall, chief investment officer of the crypto investment firm Arcane Assets, explained why the price of Bitcoin is rising again Decrypt that it can only be taken for granted. “It is quite common for them to have difficulty getting past a previous ATH and experience a break-in instead,” he said.

Wall attributes the rise to “market psychology” rather than events like that Last OKEx withdrawals, or the Expiration of around $ 1.3 billion in bitcoin options.

“OKex redemptions were only pent-up from the moment they were suspended. In terms of expiration of options – it is very unusual for sudden mechanical impacts on the market to have lasting effects – they are almost always absorbed by the market when they are of general interest Contradict mood. “He said.

He added, “With the bullish catalysts that have propelled us this far still very much in evidence, it is only a matter of time before the temporary selling pressures wear off and we continue our climb.”

Dmitrii Ushakov, CCO of Russian mining services company BitRiver, suggested that the short-term rally could reflect the acceptance of Bitcoin at the institutional level Decrypt This surge today could be part of a larger price recovery as more and more institutions realize cryptocurrencies [are] a reliable store of value and medium of exchange. “

Analysts have chalked This year’s boom resulted in heavy investments from MicroStrategy, a technology company that invested $ 425 million in Bitcoin in August and September, and Square, Twitter’s Jack Dorsey payment service, which invested $ 50 million in October. Since then, the price of Bitcoin has almost doubled.

The spike triggered by these infusions is still largely ongoing – Bitcoin started the year at around $ 7,000, fell to $ 4,000 in March and has grown steadily ever since pretty clear in recent weeks.

If so, this week’s slump may remain a slip up.

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The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment or other advice.

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