One of the leading analysts of the Polish forex platform Aforti Exchange Marek Paciorkowski expressed an opinion that if the downward trend continues, the price of bitcoin may drop to a critical level of $100, the Business Review reports.
The expert claims that the chart illustrating “the evolution of the Bitcoin market looks like a classic speculative bubble”. In particular, in December last year, there was a "burst of the bubble", which lasted until February 2018. During this period, the price of the first cryptocurrency fell from $19,500 to $5,890.
“Every recovery that we’ve seen so far, starting February 2018 to date, was each accompanied by lower volumes and interest from the buyers... we’ve been clearly dealing with a downward trend within the triangle pattern,” Paciorkowski is sure.
The fact that bitcoin is a bubble is also supported by a decrease in the volatility of the coin price.
“In recent months, we have also been experiencing a contraction in the market’s volatility, as illustrated by the sideways movement in Bollinger Bands, which have acted for many times in a row as support and resistance levels," the analyst continues.
According to his forecast, if the market continues to follow these bands only overcoming the $7,715 mark will be considered as a reliable signal for buying, while a drop below $5,613 mark is a clear signal for sale.
If bitcoin manages to fall below $5,500, the downward trend will continue, and as a result, the first cryptocurrency may drop to downright $100.
Earlier this week, the well-known investor and founder of Galaxy Digital Capital Management Mike Novogratz shared his opinion that the price of bitcoin could grow by 30% by the end of the year.
WHY IS IT IMPORTANT?
- On Friday, September 28, the price of bitcoin fluctuates around $6,700. Experts from Chainalysis believe that the market has become less sensitive to the hype around cryptocurrencies and each movement of their rate. The catalysts for change are not news reports or panic in social networks anymore, but new technologies and rules for regulating the sphere.
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