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Bitcoin is witnessing a price correction despite the positive outlook
Bitcoin Price Outlook
Bitcoin has seen massive amounts of positive expectations recently, including well-known banks and investors, however, the currency has begun to correct over the past several days, and is currently trading above $ 53,000.There are a variety of reasons that may be a reason for this, but some believe This is just a temporary drop.
The leading cryptocurrency has been making very positive moves and news for weeks, driving its price up to $ 60,000, it hit that level twice in the past week, in fact, no asset can rise indefinitely without an accidental correction.
Bitcoin witness positive forecasts
As mentioned earlier, Bitcoin has seen a huge spike in positive developments recently, it got three ETFs in Canada and one in Brazil, and there have been hints that even the US might finally be ready to consider granting approval to the previously proposed ETF over the VanEck proposal. Digital currency has started gaining recognition from banks as well, after years of criticism, GBMorgan has finally decided to start offering crypto services.
Even Wall Street leaders like Jordan Balfour have changed their stance toward Bitcoin. He recently admitted that he might have taken the wrong stance on it. Suddenly his predictions turned to the upside, Belfort announced that the currency is likely to actually reach $ 100,000 by the end of this year.
Belfort is not the only person, veteran investor Peter Brandt recently came out with his extremely optimistic forecasts, claiming that he expects Bitcoin to reach $ 200,000 in 2021, even Fed Chairman Jerome Powell himself said he believed that the cryptocurrency could become an alternative to gold, he has noticed that he does not see cryptocurrencies replace the US dollar, however, he has warned that they are highly volatile, but he still finds a use for cryptocurrencies rather than ignoring them, rejecting them, or trying to ban them publicly.
The price decline causes
But despite the positive news, Bitcoin has seen a significant price correction over the past few days, and some reports have warned that this may happen, and it looks like they were right, given that the entire market is trading in the red.
One report stated that there has been a steady decline in appetite among investors since the price hike in February, with no money flowing into the currency, it was only a matter of time before its price started to struggle.
Another reason for the price drop is that the massive bitcoin options valued at around $ 6 billion are set to expire on Friday, March 26. Meanwhile, the exchange office at the Singapore-based Delta Exchange said there is a higher accumulation of open interest on the sell-off than on the orders. , As options remain more comfortable selling the downside rather than helping the upside, and with that in mind, the current drop may just be ready for an estimated $ 6 billion earthquake to come in a matter of days.
Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.