AssetsApr 24, 2023

Bitcoin is not at risk of a significant drop in value! It's just a correction, reassures the well-known analyst

Cryptocurrency market expert speaks about the exchange rate of the oldest digital currency.

Bitcoin has fallen by nearly $2,700 per coin over the past week. The drop was therefore close to 9 percent, thus returning to the technical support area currently located at $ 28,500 from over $ 31,000 last Friday. Some analysts of the digital currency sector believe, however, that the BTC sale observed for several days will not turn into a long-term bear market, and as a consequence, the leading cryptocurrency will soon return to the path of growth.

BTC is retesting the recently broken resistance

Bitcoin rose between November 21 last year and April 14 this year by more than 100 percent, thus crossing the $31,000 barrier last Friday. It is worth noting that it was the highest level since the first half of June last year.

Over the last few days, however, the oldest cryptocurrency has experienced a significant discount. This is because the BTC price fell by almost $2,700, thus returning to the recently broken resistance level of $28,500.

This is just a correction in the BTC market

Noelle Acheson, author of the newsletter "Crypto Is Macro Now", currently points out that the decline of the strongest cryptocurrency projects may have resulted in "an accumulation of financial leverage, which could consequently lead to a large liquidation of positions."

“This, in turn, may suggest that the decline in the cryptocurrency king chart is unlikely to be long-lasting, as the recent support, as well as the positioning of derivatives, shows a clear tendency to accumulate,” emphasizes Acheson.

All factors depend on the Fed

However, not all experts in the cryptocurrency sector are so bullish about the prospects for growth in the BTC market. Some of them remain extremely cautious given the emerging monetary policy prospects, but also other obstacles that may arise in the near future.

“Scaling expectations for the Fed’s current interest rate cut through the end of the year will likely remove a pillar of recent BTC support,” Tony Sycamore, digital currency analyst at IG Australia Pty, wrote in a note. He added that the BTC rate may drop down in the next few days even to the region of $ 27,500.