After a new price record in the previous week, the bitcoin had days of oscillation. On Monday and Tuesday, the leading cryptocurrency accumulated losses of 10.8%. However, bitcoin reversed the losses on Wednesday and Thursday, adding up to a high of 2.5%. However, the price returned to the negative ground on Friday, with a fall of 3.86% (when this report was written), which made the balance for the week so far -1.5%.
According to Safiri Felix, director of Transfero, the falls were “a natural move of substantial profit-taking accumulated in recent weeks”. He recalls that this happened “on days of widespread risk aversion due to the pandemic worsening in important regions of the world”.
But investors’ interest in bitcoin should lead the price to rise again. According to Felix, institutional investors, “who had already begun to form their positions during the last months of 2020”, play an important role in this buyer flow.
But that’s not the only reason for the market’s enthusiasm. Transfero’s executive believes that the expectation for new monetary stimulus “tends to be the main vector of continuity of this cycle of appreciation”. And he cites, for example, the US$ 2 trillion package from the U.S.
With fluctuation trend, investor should keep ‘responsible exposure’
The next level that the price of bitcoin will test should be “the psychological barrier of US$ 50,000”, Felix says. “In this cycle, I see room for the market to test at least the US$ 100,000 range”, he adds.
However, it is necessary to be cautious, and he warns: “In any case, the best strategy is still to maintain responsible exposure, adapting the positions to each investor’s risk profile”, he says.
By the end of 2020, bitcoin’s price began to rise more consistently, so the leading cryptocurrency broke the market cap record in November. In the following month, it was the turn to reach the all-time maximum price. The new year’s arrival did not cause the bitcoin price to stop rising, and the currency broke a new price record early in 2021.