What (possibly) will happen to cryptocurrency this week. Three options
Over the past few days, Bitcoin has been trading in the range of $49–51 thousand after falling by more than 12% in just a day. Should we expect a further decrease in quotations in the coming days? Let’s try to figure it out.
Over the past week, Bitcoin has fallen in price by 18%, according to CoinGecko. A significant decrease in quotations took place on April 23. Then the cost of the first cryptocurrency fell to a minimum mark since March 6 — $47,5 thousand. In the last few days, the leading digital coin has been trading in the range of $49–51 thousand. What is happening to the crypto market now, and what to expect in the coming week?
The fall may continue
For many, the fall came as a surprise because the market has weaned investors from strong corrections in recent months, and everyone believed in endless growth. Next week, it is likely that Bitcoin will fall to $42–43 thousand.
Even with a correction below $40 K, this is unlikely to break the bull market. A correction is a normal state of the market, and Bitcoin may still show new highs this year.
The current drop in Bitcoin quotations for the week was less than 20%, which is very modest against the background of a twofold increase since the beginning of 2021. Cryptocurrencies are now undergoing a global correction, and investors are taking profits after tremendous unhealthy growth.
After four weeks of growth, altcoin quotations were also corrected. Now there are no prerequisites for a further decrease in the crypto market.
Breakthrough into perspective
The situation on the markets is uncertain, but Bitcoin is unlikely to fall below $35 thousand. There can be no significant growth in such conditions in the coming days, but it is also wrong to talk about the beginning of “the crypto winter” or a protracted correction. The decline in quotations by the end of this week indicates a strong pressure on the bulls, which arose due to volume liquidations in the Bitcoin futures market.
Now there is a period of consolidation when the bulls are accumulating strength for the next breakthrough. The following two to three weeks will show what this leap will be. Most altcoins will go down; however, some of them may show growth as investors begin to transfer capital from Bitcoin to alternative digital coins.
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