It time to get rid of bitcoin? Cryptocurrency fell sharply

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The value of the asset fell to two-week low of $6340 for a few hours total market capitalization declined by $6 billion. The editorial office of “RBC-Crypto” talked with experts to find out what the reason for this situation in the industry

Monday, October 29, the average market price of Bitcoin for the first time in the last two weeks has fallen below level of $6400, now it is $6340. For the past day the coin fell 2% during the same time Ethereum lost 3.3% from the price of XRP is 3.6%.

In a few hours, the total capitalization of the sector decreased by 3%, to $203 billion. Of the 100 largest for this indicator, digital money only seven are in the “green zone”.

According to the cryptanalyst of the company “Finist” Alexander Ageeva, bitcoin is in a static state, the movement range from $6000 to $7000 will persist as long as the market is not there will come a tipping point. The expert stressed that the sharp fluctuations in the value of a certain range have no special significance.

“I wouldn’t pay this much attention until the treatment will not overcome the established range. Then we can judge and expect something serious from Bitcoin. Most of the sharp movements in these boundaries is due to the inept exchange operations of asset managers,” said Ageev.

The expert “International financial centre” Olga Prokhorov is confident that such a jerk was predictable, because before that two weeks from 15 October, bitcoin was trading with very low volatility within a few percent. She added that the trading volume of the cryptocurrency has dropped significantly lately, so now deal the big players can trigger the power of small.

“Many speculators put foot triggered, which further pushes the price in the direction of the initial momentum. Also after today’s fall in the price of Bitcoin has increased dramatically the number of transactions that triggered the above scenario,” — said Prokhorov.

She claims that the launch of a number of important projects, such as Bakkt and bitcoin ETF held by investors in suspense. The depreciation of the first cryptocurrencies could affect the story of the closure of the exchange MapleChange, the expert believes.

Prokhorov said that the price of bitcoin stays above $6165, therefore early to speak about the beginning of the downtrend. The expert stressed that globally the situation has not changed, the long-term prospects remain positive.

Analyst social network for investors eToro in Russia and the CIS Mikhail Mashchenko stated that it is difficult to name the movement in 2% serious for bitcoin, though, the fluctuations of the prices in recent years did not exceed $40 per day. The expert stressed that this situation was quite predictable.

“The fact that in the last days was created just perfect conditions to manipulate the exchange rate index month-on-month volatility fell to 1.4%, the lowest level since December of 2016, and intraday trading volumes were at the level of $3.2 billion. The technical picture on the chart also contributed to the collapse in the price: mid-October quotes tried to overcome the 50-day moving, but to no avail,” — said Mashchenko.

He added that such movement was enough to place a large order to sell, placed intentionally or as a result of the error of the algorithm. The preconditions for the continuation of the bearish trend happened for a long time, said the expert.

More news on cryptocurrency can be found in our telegram channel RBC-Crypto.

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