January 25, 2021

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 $ 12 thousand, but dropped again to $ 10 thousand. Yuri 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 negativethe mood for cryptocurrencies is strengthened by the information background on ethereum, which since June this year has intercepted the agenda from bitcoin. Investors are disappointed by the news about high commissions, and the introduction of a new algorithm on the network has already been played out in quotes, so market participants have no positive expectations beyond expectations. The corrective movement thus looks very logical. It is important to note here that, to a large extent, the situation with Ethereum has more impact on altcoins than on 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.

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