Bitcoin corrects after the assault on the record of $ 40,000

The volatility that accompanies this type of assets explains both one thing and the other. The strong positioning of the institutional investors It has been propping up bitcoin’s recovery for months and is also behind last week’s rally, which took the virtual currency even above $ 41,000.

That bet in turn agitates the interest of individuals and both sustain the fever. However, experts call for caution. It is not the first time that the cryptocurrency draws in vertigo ascent and then retreats to a minimum.

It happened already in 2017, when in just a few months it went from changing for $ 3,000 to exceeding 20,000 for the first time. The subsequent decline was almost faster than the rise and within months it was back to where it started.

In 2020 the markets saw a similar upward movement, with bitcoin breaking records day after day, reaching 40,000 last week. Some fear that the same thing as in 2017 will happen again, although experts agree that the strong institutional support has marked a before and after in considering bitcoin as an alternative investment asset to others and, even, to gold as a refuge.

Despite everything, they insist on caution. “We have been warning of the strong overbought existing in this asset in the framework of the maximum euphoria reached. The incorporation of the Altcoins to the” party “is a sign of exhaustion and it cannot be forgotten that each of these tokens responds to a different objective, which must be known before investing in those assets “, points out Javier Molina, spokesperson for the eToro platform in Spain.

The limits, above or below, are difficult to define. “We are going to consider, for the moment, the zone of 40,000-41,000 dollars as the resistance that dominates the current moment. Below, very unreliable supports at 33,000 dollars first and 23,800-24,000 dollars as second. The great viable level. is in the 20,000 green bills“, he points in his analysis comment.