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July 2, 2021
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Bitcoin is struggling to recover from its recent collapse
Last week was very exciting for Bitcoin as it not only reached an all-time high but also collapsed soon after, depriving investors of a quiet weekend.
The price of the currency reached a new record, the highest ever in about a week at $ 64,548, but shortly after this record, the price began a period of steady decline followed by a sharp collapse, so that the Bitcoin price fell from Sunday from $ 60,407 to $ 51,476 before witnessing a recovery It is currently trading above the $ 53,000 level.
Bitcoin price loses around $ 15,000 in four days
The leading digital currency hit an all-time high around April 14 above $ 64,000, since then, it has been slightly corrected as it reached around $ 60,000 by late April 17th. The next day caused a shock to the cryptocurrency community as the currency collapsed to $ 51,476. , After that it recovered to $ 57,603 on Monday, April 19, but failed to resume its bullish momentum, retreating and currently trading above the $ 53,000 level.
The bitcoin price drop has dominated the headlines over the past several days, and the main reason for the drop appears to be Turkey’s decision to block cryptocurrency payments, according to reports last week, the country’s central bank decided to make crypto payments illegal starting April 30th.
The digital asset market has grown significantly in Turkey over the past months as Turkish investors joined a global rally in Bitcoin, seeking protection from the devaluation of the lira and inflation that reached 16% in March.
Pessimistic expectations
One analyst at JPMorgan believes that if Bitcoin does not cross the $ 60K level within the next few days, the momentum signals may weaken for several months, given its high level.
There were more pessimistic expectations than that, some may see that the cryptocurrency has become superficial, fragile, and exposed to the risk of a correction to 20,000 and 30,000 dollars, and they believe that such a huge drop will be part of the normal market cycle and that will not change the long-term price target of the currency of 400 thousand Dollars.
However, many analysts disputed the bearish outlook, noting that 14% of the digital currency supply has recently moved above the $ 1 trillion market value, thus becoming strong support and reducing the likelihood of its price dropping below $ 53,000.
Despite the large losses in the currency, the general trend is still up, and expectations indicate that the digital currency can still continue its bullish path, amid growing speculation that it will reach $ 80,000 by the end of the second quarter, and it is likely that it will reach $ 90,000 by the end of the second quarter. The year.
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.
