Bitcoin is struggling to recover from its recent crash

Last week was very exciting for Bitcoin as it not only hit a new all-time high but also collapsed soon after, depriving investors of a quiet weekend.

The price of the currency reached a new record, the highest ever in about a week at $ 64,548, but shortly after this record, the price began a steady decline, followed by a sharp crash, as the price of Bitcoin fell from Sunday from $ 60,407 to $ 51476, before witnessing a recovery It is currently trading above the $53,000 level.

Bitcoin

Bitcoin price loses about 15 thousand dollars in four days

registered Leading digital currency Its all-time high around April 14 is above $64,000, since then, it corrected slightly and reached around $60,000 by late April 17, the next day shocked the cryptocurrency community as the coin collapsed to $51,476, after which it recovered It reached $57603 on Monday, April 19th, but failed to resume its upward momentum and is falling back and is currently trading above the $53,000 level.

News of the bitcoin price drop has dominated the headlines for the past several days, and the main reason for the drop appears to be Turkey's decision to ban crypto payments, according to reports last week, the country's central bank decided to make crypto payments illegal starting April 30.

From what is known, owning and trading cryptocurrencies will remain legal, however, Bitcoin and altcoins can no longer be legally used as a means of payment in the country after the end of this month.

The central bank’s decision is a result of the “irreparable” damage and transaction risks that crypto assets can cause, it introduced new legislation and announced that cryptocurrencies and other assets based on blockchain technology are banned as a payment method in Turkey.

The digital asset market has grown exponentially in Turkey over the past months as Turkish investors joined the global rally in bitcoin, seeking protection from the devaluation of the lira and inflation that reached 16% in March.

pessimistic forecast

One analyst at JPMorgan believes that if Bitcoin does not break above the $60,000 level within the next few days, the momentum signals could weaken for several months, given its high level.

There was a more pessimistic forecast than that, some would see the cryptocurrency become shallow, fragile and at risk of a correction to $20,000 and $30,000, believing that such a massive drop would be part of a normal market cycle and not change the coin’s long-term price target of 400,000 dollar.

However, many analysts have contested the bearish forecast, noting that 14% of the cryptocurrency's supply has recently moved above the $1 trillion market cap, thus becoming a strong support and reducing the possibility of its price dropping below $53,000.

Despite the significant losses incurred by the currency, the general trend is still bullish, and expectations indicate that the digital currency can still continue its upward march, amid increasing speculation that it will reach $80,000 by the end of the second quarter, and potentially reach $90,000 by the end of the second quarter. general.

 

 

Mohamed Abdel Khaleq
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