Most of the largest digital coins by capitalization have risen significantly since the beginning of the year, the price of some has doubled. Everyone is curious about when the market correction will begin and whether investing in Bitcoin remains more attractive than in the altcoins.
In mid-February, Bitcoin updated the maximum of 2020, its price beat $10,400 and then declined. Now the first cryptocurrency is trading at the level of $10,200. Over the past six weeks, its rate has increased by more than 40%. Some altcoins showed even more impressive dynamics. For example, the cost of Ethereum has almost doubled in six weeks, now it is $260.
The correction will start soon
In the near future, the Bitcoin exchange rate may adjust to $9000-9500, suggested Xena Exchange CEO. He called the current value of the first cryptocurrency fair and added that in the long term, due to halving, it can reach $15,000.
“If you see Bitcoin at $8500-9000, you can buy it. The long-term view remains the same, it will be difficult for the cryptocurrency to be below $11,000 by the summer due to halving, and by the end of the year we may see $15,000,” he predicted.
Roman Nekrasov, the co-founder of LAZM, also advised investing in BTC. He called the top 5 cryptocurrencies by capitalization the most reliable and added that while the Bitcoin exchange rate is in the “green zone”, but in the short term it may return below $9000-10 000.
“If we talk about the long term, I am sure that the price of Bitcoin will grow. Now, I recommend that investors, especially beginners, be extremely careful when buying cryptocurrency. Don’t risk your last resources, diversify,” he advised.
The bottom line
The co-founder of the Garantex exchange looks more negatively at the future of the Bitcoin price. He explained that according to the technical analysis of the cryptocurrency exchange rate chart, the bullish trend will continue to the $11,400 mark. However, he claims this will be followed by a reversal due to the lack of fundamental factors.
According to him, the chances for altcoins are even worse, since the share of BTC in the market has been growing for several years, and 99% of digital money turned out to be useless. Therefore, the expert advised us to be very careful when considering investments beyond the top 20 in terms of capitalization.
“If the goal is to save capital in an anonymous and reliable form, it is better to do it in stablecoins like USDT, and for those who like to tickle their nerves – in BTC or ETH. In our opinion, in the long term, they will be more expensive than the current values, but the bottom is still far from being passed, ” he said.
Another opinion is coming from the founder of the iTLeaders venture capital club. He also believes that it is not worth buying Bitcoin right now. The expert explained that the cryptocurrency is traded near the upper border and its transition is not supported by any fundamental factors or liquidity. However, it can still break through the resistance level, since it is a speculative tool that is subject to manipulation.
“As soon as the main holders start coming out, it will go back all the way it has done in recent months in a few days. If we talk about other cryptocurrencies that have even less liquidity than BTC, we can only strongly recommend that non-professional investors do not enter them and look for other tools for investing funds,” he said.
Reasons for the market’s growth and the forecast
According to the head of the analytical department of AMarkets, Bitcoin has risen in price inside the environment of the crisis provoked by the coronavirus. Therefore, until the situation with the disease stabilizes, the first cryptocurrency will grow in price, in the future adding another 35-40%.
Alpari IT Consulting analyst also spoke about the risks of buying cryptocurrency at current levels. He suggested that from February 16, the market may start a downward correction, which will last until March 5. It is better to consider the possibility of purchasing an asset after this date, the expert advised.
The Vice President of the Cryptocurrency & Blockchain Association is also confident that the cryptocurrency market will soon correct. The only chance to break through the $10,500 level is a significant increase in the flow of liquidity, according to the expert. However, judging by the current trading on the leading exchanges, investors who came to the market during the previous month prefer to fix profits, and the influx of new funds and bullish sentiment are gradually coming to naught, he added.
“However, if institutional or large investors decide to continue to disperse Bitcoin, then at the current market volume they are quite capable of it. Then, if the $10,500 level is broken, the next significant resistance level will be $12,000. The main altcoins, such as ETH, BCH, LTC, and IOTA are in the fairway of Bitcoin and the correlation between the change in prices for altcoins and Bitcoin is now quite high, so it makes no sense to consider them as a separate investment object,” explained the vice president.
In his opinion, at the moment it is not advisable to make any long-term investments in bitcoin until the beginning of a long-term trend when the price of the cryptocurrency will be at levels above $10,500 and close to $11,000.
Most experts believe that it is not necessary to buy the first cryptocurrency now, since its price may adjust in the near future. However, experts say that then, in the long term, the asset will rise in price. Analysts call halving, which will take place in May this year, the main driver of Bitcoin’s growth.