"Technical rebound. Why bitcoin has not yet reached the bottom

"Technical rebound. Why bitcoin has not yet reached the bottom
Experts told about what led to the recovery of the first cryptocurrency above $20 thousand and gave forecasts for its further movement

Bitcoin overnight rose by 8%. The rate of the first cryptocurrency again reached $20.35 thousand. As of 14:00 Moscow time on September 27, it is trading at $20.1 thousand. The cost of bitcoin began to grow actively during the night of September 27. The cryptocurrency is recovering in price after a few days ago updated the local minimum at the level of $18.1 thousand.

Experts told about the reasons for the rise in bitcoin price and gave forecasts for its further dynamics.

Temporary recovery

There are no objective reasons for the growth of bitcoin now, said the head of the analytical department of AMarkets. According to him, it is likely that investors bought the drawdown, which contributed to the technical bounce of bitcoin after the fall last week.

As before, the main importance for the cryptocurrency market are the decisions of the world regulators on rates, which will only grow, the expert noted. He explained that information on inflation in the eurozone and the U.S., as well as signals of recession in the developed economies of the world, is expected to lead to new falls in bitcoin, and then - other currencies.

Price corridor
The current growth of BTC has nothing to do with the fundamental reasons: the asset simply continues to trade in the corridor of $18-25 thousand, from which there are upward and downward movements, said 8848 Invest's leading analyst. He clarified that the current growth of bitcoin can take place up to the upper boundary of the designated range.

As a whole the asset continues to accumulate conditions for formation of the bottom, but to speak about that the bottom will be formed on BTC it is possible only at breakdown and fastening above level of $24,000, the analyst considers. He didn't rule out another renewal of the annual minimum at $17,600.

"But if by the end of September bitcoin will not lose in the price significantly, we can expect growth in the fourth quarter of this year with targets of $30,000 and $35,000 per BTC," the expert suggested.