Bitcoin has seen wild price movements this week, rising from just above $30,000 to nearly $40,000 and then sliding again. RT’s Boom Bust explores the moves of the world’s top cryptocurrency.
The most popular digital currency plunged again on Sunday, losing around nine percent in value over the last 24 hours and trading below the $35,000 level. While some analysts say the price of bitcoin is correcting, it could actually be consolidating, which is a healthy market reaction after enormous growth, Christy Ai of RT’s Boom Bust explains.
“We see bitcoin forming a nice consolidation pattern,” she said on the latest episode of the show, adding that $35,000 could become another medium-term support level for the cryptocurrency. “This is a very healthy move for the market after that parabolic move up past 40,000 [dollars].”
She noted that the recent drop in the price of bitcoin coincided with a rise in the dollar caused by another massive coronavirus stimulus package in the US. However, the greenback’s bounce could be short-lived due to the inflationary consequences of stimulus measures.
“When they start firing up the printing presses, we can expect further depreciation, which will lead to another bitcoin rally cycle,” Ai said.
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