Can Bitcoin return to $ 50,000?|FXstreet.cz

Bitcoin dropped on Thursday and stopped the rally observed in the last five days.Couldn't keep up over $ 50,000 because traders couldn't keep the bull momentum observed after a sudden fall last weekend.In New York, the token fell by 5.6 %.

Other digital assets also dropped, with smaller tokens as the most affected by Monero and EOS.

Some analysts claim that BTC is found in a neutral band between different sliding diameters and can create a "head and shoulders" formation.

"The problem with the cryptocurrencies is to catch the falling knife," said Cate Faddis, President and CIO of Grace Capital."Krypto makes me big concerns - frankly, it reminds me of 2008 with real estate and could be expanded to the whole market."

Chuck Cumello, CEO of Essex Financial Services, also said: "People must really understand what it is in my opinion.It's a speculative investment.More common investment does not drop by 20 % during the weekend.It just doesn't happen."

Cryptocurrencies in the last few sessions showed wild movements, especially over the past weekend, when many of them found themselves on a wider wave of risk reduction that hit US stocks.The reason was a sharply growing inflation that forces central banks to tighten monetary policy.Bitcoin eventually lost even 21 %.

Brett Munster of Blockforce Capital explained that the market has grown quite a long time before falling last weekend, so no wonder the quotations fluctuated.However, this is not negative if traders have not been driven under their margin requirements.This will lead to forced liquidations that are usually self -saving.

Yet many cryptocurrency fans ignore short -term movements and follow long -term trends.Mike McGlone of Bloomberg Intelligence said Bitcoin is a risk asset that is slowly becoming a digital reserve asset, and this should have a positive impact on its price.Estimates that next year could reach $ 100,000, all the more so because demand and general acceptance are growing while the offer is declining.

"The key question at the end of 2021 is whether Bitcoin is not too hot," McGlone said."Our chart shows that the price of cryptocurrency is relatively low and moves approximately at the level of 50 -week gliding diameter that is inclined upwards."