Forecast btc and eth from 12.05.2021

12.05.2021 | auglovoi

Bitcoin won’t break $60 000 in the near future

For the past two weeks, bitcoin prices on online exchanges have been holding steady in the $52,000 to $58,000 corridor. Testing the marks above the last price, the first cryptocurrency is returning to its usual values. On the one hand, it looks like market cooling, on the other hand, it looks like accumulation of liquidity before the next jump.

The number of cryptocurrency “whales” is shrinking

According to CoinDesk, the number of addresses with more than 1,000 first cryptocurrency coins has decreased by 3% in the last week alone. Many experts see this as a signal to the possible fall of prices below $50,000. However, this forecast does not consider another aspect of institutional investing - the number of bitcoins held by major holders. It is the latter parameter that indicates a growing interest in digital gold on the part of major players.

If we consider short-term trading over the next seven days, we can talk about a corridor of $56,000 - $58,000. Buying at the first cut and selling at the second one, you can get a good profit, but you should not wait for an exit from this sideways trend in the near future. However, it is necessary to be careful with borrowed funds and to have enough liquidity for overcoming of local emissions downwards. It is not worth playing short at the moment. The situation in the alternative cryptocurrency market is now heated to the limit, and when the cooling off period comes, bitcoin can show just explosive growth, catching up with the general mood of investors.

Ethereum is rising at a record pace

Ethereum has almost doubled in price in the last two weeks. There are no technical reasons here, only fundamental ones, of which there are essentially two:

• The transition to the second version of the protocol,
• increased interest in new projects released on the blockchain of the second cryptocurrency.

Expecting further “flight to the moon” is clearly not worth it. It is possible that the price was mostly raised by retail investors who want to freeze funds in Ethereum 2.0 to become one of the first validators of the new network. All indications now are that Ethereum will rise in price to $10,000 by the end of the year. Except that the cryptocurrency will face severe storms on the way to that price, which will lead to losses for many short-term traders.

It is possible to open long positions without the use of borrowed funds, but it is clearly not worth playing short. On local segments it will be almost impossible to catch a drawdown in prices.

We should not forget about the interest in the second most capitalized cryptocurrency from large investors. More and more companies use Ethereum in their cryptocurrency portfolio, which allows corporations to effectively protect themselves from inflation risks, receiving, albeit “paper”, but a good profit. They will also enable Ethereum prices on online exchanges to show steady growth by buying out some of the free liquidity.

These articles are for informational purposes and are not investment advice or guarantees.