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Economic news / Економічні новини

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Bitcoin price drop explained
Economist Golubovsky calls bitcoin price drop technical

Відadmin

Чер 14, 2022

The fall of bitcoin to the level of 2020 is due to the technical features of the cryptocurrency and the expectation of investors for a decision following the meeting of the US Federal Reserve System (FRS). The reasons for the change in course in an interview with Lenta.ru were explained by Dmitry Golubovsky, an analyst at the Golden Mint House.

According to the analyst, the mark of 24 thousand dollars will fall even lower during the week. After that, the rate will remain in the range of 20-35 thousand dollars for a long time.

“Bitcoin is driven by purely technical things, it has no intrinsic essence. All its movements are determined purely by technical analysis, if you look at the long-term charts of bitcoin, it always falls in the two-hundred-week average It’s just a pattern that exists for a long period of time. The periods of activity of the crypto market are replaced by periods of hibernation, there is a certain business cycle when, after another fever, the cryptocurrency falls. Now it will probably come to the level of 19,000 kopecks. Then the so-called crypto winter begins, when for several years they begin to live sideways around these levels,” he said.

There are also other circumstances that affect the change in the value of bitcoin, says Golubovsky.

Bitcoin will start to rise in price after investors show interest in it again, the economist believes.

“Interest in bitcoin may wake up if financial logistics in the world collapse. Bitcoin is a fairly effective means of cross-border payment. As there will be more and more problems with the currencies of weak states, crypto assets may be in demand in such areas of financial distress,” he concluded.

Earlier it became known that bitcoin updated the minimum of December 2020, having lost more than ten percent of the value.