CEX blog. IO | What happens with the bitcoin exchange rate, why the price goes down and what will happenwith cryptocurrency further?

Most recently, the bitcoin rate was above the $12,000 mark, but fell again to $10,000.Yuriy Mazur,the head of the data analysis department of CEX.IO Broker, commented on how this is explained and what can be expected from the first cryptocurrency in the near future.

Bitcoin, like the entire crypto market, was underthe influence of the factor of the US presidential elections, which traditionally strengthens the position of the US dollar on all financial markets. A decline in value is observed for the pound sterling, euro, oil and gold, which retreated from local maximums. Nevertheless, we tend to consider the current behavior of quotes as a correction, rather than a full-scale downtrend.

As for the cryptocurrency market, the negativesentiment on cryptocurrencies is strengthened by the information background on Ethereum, which has taken over the agenda from Bitcoin since June of this year. Investors are disappointed by the news about high commissions, and the introduction of a new algorithm on the network has already been reflected in quotes, so market participants do not have any positive expectations beyond their expectations. The corrective movement thus looks very logical. It is important to note here that, for the most part, the situation with Ethereum affects altcoins more than the main cryptocurrency. Even the decline in recent days for Bitcoin was more modest than for the same Ethereum.

From a technical point of view, psychologically importantthe mark that investors will hold on the BTC / USD pair is $ 10,000. The price of bitcoin is likely to consolidate around it, with periodic spikes up to $ 10,500 and down to $ 9,700. Fixing bitcoin below the $ 9,500 range - 9,700 will indicate a medium-term drop in quotations to the levels of $ 8,900 - $ 9,000 and a shift in the balance towards bearish sentiments.

Read the full material here.