-18% last week and +14% in just 1 day - what's going on with the bitcoin price?
Bitcoin briefly fell below $33,000, but in the U.S. session began to rise, rising to $37,500 by the end of the day. The growth from lows to highs of the day was $4700 (14%).
BTC rebound intensified amid the reversal of stock indices in the second half of the U.S. stock trading. was able to finish the day with a slight increase after 4 days of falling, although in the middle of the session carried the maximum losses for the last year and a half (about 4%).
Renowned Twitter expert Ton Weiss announced the ideal opportunity for bitcoin reversal, writes RBC. According to him, BTC reached the 20-month moving average (MA), which passes at $34,000, and it is "an ideal opportunity" to reverse the trend and return the asset to growth.
Co-founder of Morgan Creek Anthony Pompliano believes that the trend reversal will occur only in case of massive purchases of the asset by large investors. But at the moment they don't buy out the fall yet.
Analyst Benjamin Cowan believes bitcoin could fall to $20,000. Robert Kiyosaki, author of the bestseller "Rich Daddy, Poor Daddy", also admits that BTC will fall to this level, which he will use for purchases.
Markets are preparing for the upcoming Fed meeting, the results of which will be announced on January 26. The regulator is expected to signal its readiness to raise the key rate by 0.25% at the March meeting along with the final rollback of the quantitative easing program.
The weakening of arguments in favor of bitcoin as a currency and inflation hedge amid tightening Federal Reserve policies indicates the potential onset of a "crypto-zima," according to UBS Bank. The current decline in cryptocurrencies will be recouped "for years" because of investors' rethinking of digital assets.
"We believe that investors will be looking at buying from the 20-30 thousand per bitcoin area. Whether these purchases will be at the upper or lower boundary depends, among other things, on the situation in the stock markets. The return of buyers there will support risk demand among institutional investors," notes the FxPro team of analysts.