“Bitcoin Has Met Resistance.” What Will Happen To Cryptocurrency Next?
Why the exchange rate of the main digital asset on the night of November 11 sharply decreased by 9% and what to expect from the crypto market in the coming weeks
On the night of November 11, the price of bitcoin dropped to $62.8 thousand. This happened after the cryptocurrency updated the historical maximum at the level of $ 69 thousand. At the moment, the coin is trading at $64.8 thousand. Why the bitcoin exchange rate decreased by 9% and what to expect from the cryptocurrency in the near future. We are studying several options.
Bitcoin has met Resistance
Bitcoin’s update of the historical maximum above $69 thousand was provoked by investors’ fears due to rising inflation in the United States. Bitcoin could have grown sharply in price, but it met the resistance of the “bears”.
An overlap of technical and fundamental factors led to a sharp drop in the value of bitcoin. The situation should be considered as a technical correction after the next update of the maximum, which was bound to happen.
Correlation with stock markets
The decline of bitcoin by more than 9% on October 11 is the reaction of the asset to the general correction of the world stock markets. Asian and American markets sank after the information about the growth of inflation in China and the United States appeared.
The drop in the crypto market quotes is a temporary correction and the industry will continue to grow in the future. Many investors understand that digital assets can be a good protection against inflation.
Everything is going according to plan
The overall trend of the digital asset market remains bullish, despite the sharp decline in bitcoin on November 10. The trend for investors to accumulate bitcoins and withdraw cryptocurrencies from exchanges continues. Given that the coin managed to gain a foothold above $ 60 thousand, it is predicted that the price of the cryptocurrency will rise to $ 100 thousand by the beginning of next year.