Cryptocurrency analyst at eToro, Simon Peters, believes that the price of Bitcoin is showing signs of stabilizing.
Peters has already had the opportunity to analyse the trend of the BTC price several times, for example by predicting that it will reach the $25,000 mark at the end of 2020.
Analysing the current scenario, he has noticed signs of stabilization around the $45,000 price level after last week’s sell-off.
“From a technical point of view, the price is finding some support from the 200-day exponential moving average, plus other momentum indicators such as RSI (Relative Strength Index) which shows that the price is somewhat oversold”.
In other words, there could be an increase in buying pressure, after the selling pressure prevailed in recent days.
According to Peters, in fact, there would now be the possibility that a new wave of purchases could again push up prices, so much so that many investors are actually already taking advantage of the price drop due to the sell-off to invest in cryptocurrencies, taking advantage of this new period of high volatility.
“Already both bitcoin and ethereum are 10% higher than the low points seen on the weekend, and we see this trend to being reflected across the cryptoasset market”.
eToro: Watch out for bitcoin influencers
However, there is a strong uncertainty surrounding these dynamics, due to the behaviour of some major influencers in the crypto world, in particular Elon Musk.
These are in fact real loose cannons that can occasionally influence investors with just a few tweets, momentarily changing the scenario.
Indeed, according to Peters, some of these key influencers can even change the entire technical picture, so caution should be exercised when making predictions at this time.
He also points out that the amount of bitcoin deposited on exchange wallets has increased over the past month, probably to be sold, so there could still be very high volatility in cryptocurrency prices in the coming days.
Perhaps one could speculate that, in the absence of any major unforeseen news, the current $45,000 mark might hold, with significant, but short-term, fluctuations around it.