The crypto coins are getting the wind from the front for a while. In the past 24 hours, almost all crypto coins have lost ground. That could herald the start of a hefty correction for certain currencies. Pankaj Balani, the CEO of Delta Exchange, a digital asset derivatives trading platform, predicts that Bitcoin’s price could drop to $ 40,000 if there is insufficient support for the currency.
Why is this important?
Since the start of 2021, Bitcoin’s value has increased from nearly $ 29,000 to just under $ 55,000 (at the time of this writing). In the meantime, the crypto coin even briefly reached the $ 64,000 mark. If Balani’s prediction is correct, this would immediately be the strongest decline for the crypto currency this year. It remains difficult to predict what the future holds for Bitcoin. Crypto prognose Germany is popular.
Quite a few crypto coins have lost some ground in the past 24 hours. Despite the sharp drop in some currencies, it is too early to use the word “crash”. There was also a correction on April 23. Nevertheless, we notice that Bitcoin has not managed to reach the $ 60,000 mark in recent weeks. Since April 18, the value of the largest crypto coin has fluctuated around $ 55,000.
Resistance and support
Just like with stocks, analysts look at so-called resistance and support lines with the crypto coins. Investors try to determine the ideal buying and selling moment on the basis of these fictitious boundaries. Using that analysis, Balani predicts that Bitcoin’s price could drop to $ 40,000. According to the CEO, $ 50,000 is now an important line of support for investors wishing to capitalize on a potential Bitcoin resurgence.
“If the price of Bitcoin dips below that support line, I expect the next support line to be at $ 40,000,” he said in an interview with Bloomberg on Tuesday. He added that a drop below $ 50,000 will fuel volatility, and that all cryptocurrencies – including the second largest Ether – should take a plunge.
Not all analysts seem to share Balani’s view. According to Lark Davis, a crypto analyst, the current declines in value are not uncommon. “We have certainly not seen such price drops in one week,” says a sarcastic tweet from him. currencyconverters.org Crypto predictions is popular.
While the crypto coins are in turbulent waters, some prominent names share messages regarding the crypto coins. For example, Mark Zuckerberg announced on Tuesday that he named his goat Bitcoin. Elon Musk has asked his followers via Twitter if they want Dogecoin as a payment method. Shortly after that tweet, Dogecoin shot up 20 percent. Meanwhile, the value of the joke coin has dropped again.