23.12.202014:05 Forex Analysis & Reviews: Bitcoin could drop by 35% in coming weeks

Since the beginning of the autumn, the first cryptocurrency has risen in price by 120%. Analysts believe that bitcoin is overbought and its rate could fall to $15,000 within a few weeks. Experts confirm their opinion by the Relative Strength Index, the value of which has risen above the critical value of 70 points - up to 81 points.

Recently, it became known that the coronavirus had a new strain. This led to a stock market crash. As a result, the US dollar strengthened, and bitcoin fell by 3.5% to $22,700. However, today, bitcoin is trading at $23,762.

On the other hand, the news about economic stimulus kept prices from a deeper correction. However, there are fears that following Great Britain, other EU countries will again introduce quarantine. This will lead to a decline in stock markets, the euro, the British pound, oil and, of course, cryptocurrencies.

Experts predict a further drop in the bitcoin rate to the support level of $20,000 and even to $18,100. However, if the price fails to break the support level, the bitcoin rate may rise to $27,000. However, it will be necessary to overcome the resistance levels of $24,000 and $25,000.

However, not all analysts are so pessimistic. Some believe that the rate could fall to $21,000. This drop could be hindered by the support levels of $21,800 and $22,300.

Meanwhile, on Tuesday, December 22, the Ethereum mid-market rate fell to the lowest level of $590 last logged on December 16. After that, it rose again. Today, Ethereum is trading at $594.32.

Analysts believe the Ethereum correction was predictable. Some of them believe that Ethereum will fall even lower in the future to $530-$550. Others, on the contrary, believe that the price will not slide below $565-570. Therefore, experts advise traders to start buying in parts at the level of $590.

However, in general, the prospects for ETH in 2021 are positive. Experts are now working to improve the existing Ethereum 1.0 blockchain. In case of success, the ETH rate has all chances to exceed not only $1,000, but also $1,500.

The new Ethereum 2.0 network may resolve such problems as scalability and high performance. The throughput is expected to reach 15,000 transactions per second or more.

As a result, Ethereum can displace bitcoin from the pedestal, as it can be used both in everyday payments and in cross-border ones, without causing significant inconvenience to users due to time-consuming transactions. Naturally, the price of the ETH token will also change, experts say.