Trend Reversal or Correction? Leading Cryptocurrencies Stopped Rising

Trend Reversal or Correction? Leading Cryptocurrencies Stopped Rising

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On the eve of Thanksgiving on November 26, the markets froze, and the cryptocurrency market even began to decline. Will the trend reversal happen or will the rally continue after the holiday and Black Friday on November 27?

Closely approaching the level of the all-time high, bitcoin turned around and went down. Ethereum behaved similarly. The champion of recent days XRP has also stopped rising. Experts associate this with the upcoming Thanksgiving Day and Black Friday. It is also possible that private investors have taken profits and withdrawn money in order to use the cash.

After BTC hit $ 19.4K, there was little doubt that we would see an all-time high update. However, it is now obvious that the new record is being postponed, and no one is undertaking to predict for how long. In addition to current events such as the November 27 sale and Thanksgiving, strong fundamentals are also having an impact on the market. First of all, the intrigue with the US presidential elections is resolved. Trump hands over the affairs to Biden, that means he has admitted defeat. The expected political stabilization calms the markets. This will cause an outflow of funds from cryptocurrencies in the medium term, and primarily from bitcoin.

In addition, it turned out that the effectiveness of the COVID-19 vaccine is even higher than it was originally stated. This is associated with the accelerated exit of the world economy from the coronavirus crisis and the end of the uncontrolled emission of fiat money. This also puts pressure on the cryptocurrency market and may cause it to drop in the short and medium-term.

All together can lead to a drop of BTC to $ 13-14K levels. It is at this price that investors will be ready to buy, counting on the long-term growth of the leading cryptocurrency. Moreover, such investors are likely to include large investment funds. Funds have been entering the cryptocurrency market for several months now and this is a global trend for sure. For example, already at the current stage of the bitcoin rally, the Australian investment company Pendal Group announced that it had bought BTC. The company has $ 73 billion in assets under management. It is highly likely that the activity of funds and institutional investors will lead to a return of positive dynamics on the horizon of two to three months. If this forecast is correct, then cryptocurrencies will meet the New Year at the lows, and new historical highs will be reached in the second half of the 2021 first quarter.

This also boils down to the expectations of the Ethereum community. Most likely, the launch of the zero phase of ETH 2.0 is postponed to the first quarter. And it is very likely that not at the beginning, but in the second half of the quarter. ETH rise will continue after the launch of Phase 0.