Bitcoin has slowed down sharply. Investors think about when the correction will start, how deep it will be, and when to take profit.
For the first time since December 2017, the bitcoin price reached $18.5K. Meanwhile, the capitalization of the first cryptocurrency did set a historical record of over $340 billion. Since the fall in March, BTC has risen in price by more than 370%. Such a long and impressive growth, as a rule, leads to the appearance of the FOMO effect for investors and even traders. FOMO – Fear of missing out syndrome – can push players to irrational actions. Panic buying right before the asset falls leads to losses in investment.
Analysts point out that buying bitcoin is dangerous now. Its growth and the possible achievement of a historical maximum did not lead to the growth of altcoins on the same scale. If BTC remains to add 8% to set a new all-time record, other leading cryptocurrencies are lagging behind. ETH is now around 34% of its all-time high on January 14, 2018, when it was worth $1400. XRP is now worth about 7.5% of the high of $3.82 on January 4, 2018.
Analysts believe that buying BTC for more than $15K in such conditions is dangerous. This can only be done for short-term speculation. The most prudent experts believe that it is necessary to buy the first cryptocurrency only after a significant correction to the level of $10K – $11K. According to the forecasts of the same analysts, this may happen in early January 2021. However, there are other opinions, which boil down to a forecast of the BTC price of $25K even before the end of this year. But both predictions may turn out to be true, given that trend reversal often occurs during the New Year and Christmas holidays.
However, according to the results of technical analysis, the probability of BTC correction is growing every day, and the probability of continued growth is decreasing. The minimum correction level is $15K. At this level, the BTC price was fixed for a long time. There is also an opinion that the correction could be at the level of $16K – $16.4K. This is exactly where bitcoin can drop if traders take profits. In this case, it will be possible to buy BTC for a medium-term and wait for the next correction level, which is about $21K, according to the technical analysis. If the growth is confirmed, then it will be a deeper correction after, to the level of $12K – $13K and even to $10K – $11K.
Controversial bitcoin predictions could lead investors to seek opportunities in altcoins. One of these promising tokens could be the Binance cryptocurrency, Binance Coin (BNB). According to Binance CEO Changpeng Zhao (CZ), the adoption rate for cryptocurrencies is now 0.1%. This means that in the long term the market and leading currencies will grow 1000 times. CZ itself only invests in BNB and never exchanges BNB for fiat money, counting on its explosive growth.