30.09.201911:26 Forex-elemzések és áttekintések: Disastrous September: Bitcoin is in despair, but does not give up

The first month of autumn was quite stressful for the leading digital asset. The collapse was followed by another collapse, alternating with rare rises. According to some experts, the fall of cryptocurrency No. 1 was caused by the launch of new bitcoin futures.

In addition, according to analysts, the current price of Bitcoin is the worst since the third quarter of 2014. A quarterly drop in BTC could reach almost 30%, experts emphasize. In just one week, the first cryptocurrency suffered massive losses, having fallen in price by 20%. Thus, weekly depreciation has become the maximum since November 2018, analysts say.

Also, according to preliminary estimates by experts of the reputable bank JPMorgan Chase, the collapse of bitcoin by 20%, recorded last week, was caused by the effect of new bitcoin futures. We can recall that their launch took place last Monday, and the initiator was the company owner of the New York Stock Exchange.

The leading digital asset began last week on a positive, trading at around $ 10,000 for 1 coin. The day after the start of trading in bitcoin futures, the cryptocurrency flagship suddenly went down, falling from $ 9,800 to $ 8,100 for 1 BTC. By the end of last week, on Thursday, cryptocurrency No. 1 reached a minimum of $ 7800 for 1 coin.

The decline in bitcoin last week was expected, however, the fall rate of the first cryptocurrency was an unpleasant surprise for many market participants. A similar collapse was recorded on the eve of the expiration of bitcoin options on Deribit and LedgerX exchanges, as well as CME futures.

According to analysts, Bitcoin fell below the 200-day moving average (200-MA) - a psychologically important border, which is estimated by many investors as a kind of boundary between the "bull" and "bear" markets. The elimination of long positions also contributed to a sharp drop in the military-technical cooperation last week, experts are sure.

JPMorgan emphasizes that earlier peak bitcoin values often coincided with periods of overbought cryptocurrency No. 1. Two months ago, a long position in futures on the Chicago Mercantile Exchange, where settlement bitcoin futures are traded, reached limit values. Last week, there was a noticeable reduction in long positions in bitcoin, which led to the collapse of the first cryptocurrency, experts say.

However, sharp fluctuations in the price of military-technical cooperation does not mean that the asset needs to be disposed of, say experienced market participants. According to experts, bitcoin can rise and fall, despite that, the annual dynamics of the asset provides good reasons for its purchase. Analysts also record an increase in such indicators of the Bitcoin network as the number of wallets and transaction volume and the growth of hashrate. Recall that a cryptographic unit is called a hashrate. In these units, the computing power of equipment for mining cryptocurrency (mining) is measured.

According to Lou Kerner, an ex-analyst at Goldman Sachs, the rise of Bitcoin to new highs is possible without the support of institutional investors. At the same time, according to the expert, the previous rise in cryptocurrency No. 1 occurred due to the activation of retailers.

Despite a series of falls, the main virtual asset remains stable and gives investors hope for further growth. However, experts find it difficult to assess the speed and magnitude of the possible rise of the first cryptocurrency in the near future.