The night before, on November 10, Bitcoin set a new record. But then, its price dropped by $4,000.
According to CoinGecko, on November 10 at around 7 p.m. (UTM+2), the value of Bitcoin rose above $69,000 for the first time ever. The cryptocurrency broke new ground amid the publication of a record inflation rate by the U.S. Department of Labor. In annual terms, the growth of consumer prices in the U.S. amounted to 6,2%. This is the sharpest increase since November of 1990 — then the inflation rate was higher only by 0,1%.
The correction and decline occurred almost immediately amid news from China. The difficulties with payments on Chinese real estate developer Evergrande bonds and rumors about its default brought the BTC rate down by more than $4000. The cryptocurrency market is not the only one to react to such news. For example, the U.S. S&P 500 index declined 0,82%. As a result, China Evergrande Group did make those payments, Reuters reports. Bitcoin is trading around $65,000 as of 2 p.m. (UTM+2), according to CoinGecko.
Amid reaching a new all-time high, Bitcoins that have not been used since 2013 came into play. On November 11 evening, an anonymous user withdrew 2,2 thousand BTC bought in October 2013. At the time of purchase, the asset’s value was about $330 thousand, at the time of sale, it reached $149,6 million. Thus, the total return over 8 years was more than 45200%.
Situation Analysis and Forecasts
Analysts from Kraken Intelligence forecast another Bitcoin rally, comparing the current situation to the similar one in Q4 2017. Following their estimates, the value of BTC by the end of 2021 could rise to $96,000.
An anonymous analyst PlanB, the creator of the Stock-to-Flow (S2F) model, makes a similar forecast on Twitter. In his opinion, the price may exceed $98,000 in November and overcome the $135,000 mark by the end of December. In general, the ongoing trend in the analyst’s opinion will last from 3 to 6 months.
“Now, we are expecting a small correction in the area of $62,000-60,000, and then we are waiting for some movement to the $100,000 area from there,” — Ivan Kibalchich, CEO of Yosu, commented on the situation for us.
Trader and co-founder of hedge fund Fakel, Rast Pentagon, believes that Bitcoin could hold on to the firm $63,000 trend support level. “Right now, we are at the beginning of the fifth final wave of the current trend, and we can expect a hike to the $70,000-73,000 level within the next couple of weeks. I will close my last purchases at this level and wait for further clarity. After all, it will resemble the movement from 30.08 — 08.09 of this year. In this case, a further correction to the $58,000-56,000 level awaits us. If Bitcoin can’t consolidate higher than $62,500 within the next 2-3 days, then we are waiting for the possible correction to the level of $58,000-55,000 per one coin already now,” — the expert states in the commentary for our edition.
