The Bitcoin currency witnessed a recovery during Monday’s trading, to trade in the $7,700 range, with the improvement in the relative demand for buying cryptocurrencies, as Bitcoin is still sticking to trading above the $7,500 psychological support level, but it needs more stimuli and strong motives to reach the $8000 level and return to the entry. In the bull market again.
This recovery comes after the bitcoin currency incurred losses amounting to about 12.6% over the course of trading the week, recording its first weekly decline in six weeks, due to the activity of correction and profit-taking operations, in addition to increasing fears in the markets that the sudden rise of the bitcoin currency in the last few weeks was due to manipulation in their prices.
But many analysts see XM The decline of the bitcoin currency is natural and evidence of its health, as it recorded strong rises to reach the level of $ 9,000 during the trading of the past few weeks, and it is normal for a negative corrective period to occur, and bitcoin has become a focus of wide attention among retail investors and major financial institutions. .
Over the past six weeks of trading, the bitcoin has seen a rise of about 70%, reaching its highest level in a year at $9,095, and since the beginning of this year so far, the currency has gained more than 120%.
Is the rise in stocks behind the decline in the price of bitcoin?
It was reported that shortly before the sudden drop in bitcoin, about 25,160 bitcoins, estimated at about $215 million, were transferred from an unknown platform wallet to Coinbase, which raised fears of bitcoin price manipulation when it suddenly rose.
While digital market analysts believe that the decline in digital currencies as a result of the correction and profit-taking operations during the past week comes at a time when the US stock markets have recovered significantly, which indicates that there is a correlation between investments in the cryptocurrency markets and investments out of the US stock markets.
The digital market analyst, “Oliver Isaac,” said that the bitcoin currency is likely to achieve broad gains to reach $25,000 by the end of this year. The escalation of the trade war between the United States and China over digital currencies, especially Bitcoin, which witnessed a sudden and increased interest as a hedge for investments, which led to a rise in its price.
Most experts recommend buying bitcoin at current levels with $9,000 as the first target, and many believe that the short-term target for bitcoin is still $10,000.
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