Cryptocurrency Celebrated the Record of $ 40,000
Experts call for caution: it is not the first time that the cryptocurrency draws in vertigo ascent and then receded.
The short but intense history of bitcoin is written based on chapters of euphoria followed by corrections of the same magnitude. If last Thursday investors in this cryptocurrency celebrated the record of $ 40,000, in the last hours they observe how it is again close to the 30,000 level after a correction that only this Monday is around 15%.
The volatility that accompanies this type of asset explains both one thing and the other. The strong positioning of institutional investors has been underpinning the recovery of bitcoin for months and is also behind last week’s rally, which took the virtual currency even above $ 41,000.
That bet in turn agitates the interest of individuals and both sustain the fever. However, experts call for caution. It is not the first time that the cryptocurrency draws in vertigo ascent and then falls back to lows.
It already happened in 2017, when in just a few months it went from changing for $ 3,000 to exceeding 20,000 for the first time. The subsequent decline was almost faster than the rise and within months it was back to its starting point.
In 2020 the markets saw a similar upward movement, with bitcoin breaking records day after day, reaching 40,000 last week. There are those who fear that the same thing as in 2017 will happen again, although experts agree that the strong institutional support has marked a before and after in considering bitcoin as an alternative investment asset to others and, even, to gold as a refuge .
Despite everything, they insist on caution. “We have been warning of the strong over-purchase in this asset in the context of maximum euphoria reached. The incorporation of Altcoins to the” party “is a symptom of exhaustion and it cannot be forgotten that each of these tokens responds to a different objective, which must be known before investing in these assets, “says Javier Molina, spokesperson for the eToro platform in Spain.
The limits, above or below, are difficult to define. “We are going to consider, for the moment, the area of $ 40,000-41,000 as the resistance that dominates the current moment. Below, very unreliable supports at $ 33,000 first and $ 23,800-24,000 as second. The great viable level it is in the 20,000 greenbacks, “he points out in his analysis comment.
Cryptocurrency Celebrated the Record of $ 40 - /10