The expert analyzed the situation in the digital asset industry and told when the price of bitcoin and Ethereum will fall to a minimum and return to growth
The crypto market is in the midst of “crypto-winter” at the “bottom” line of the current correction, the senior analyst is sure Bestchange.ru Nikita Zuborev. According to him, expectations from the coming months are rather neutral or moderately negative.
“The total capitalization of the crypto market is about $ 1 trillion, which can be considered a fairly confident level and it is unlikely that the market will shrink significantly more than the current values,” the expert suggested.
As of August 24, 17:45 Moscow time, bitcoin is trading at $21.5 thousand, the price of Ethereum is $ 1.6 thousand. Over the past week, cryptocurrencies have fallen in price by 10% and 12%, respectively.
Zuborev predicted that bitcoin will stagnate for “many more weeks”, while the Ethereum exchange rate expects “relative calm” after a period of turbulence in mid-September.
On September 10, Ethereum may switch to the Proof-of-Stake protocol, according to the new roadmap of the project. The “merger” will consist of two stages. The first will be an update called Bellatrix on September 6. If it is successful, the Paris update will be launched when the system reaches the required TTD — Terminal Total Difficulty indicator (cumulative network complexity up to the requested block).
The exit from the “crypto winter” season can be tracked by the bitcoin dominance index, Zuborev added. In his opinion, it will be possible to talk about the beginning of a new growth cycle after bitcoin begins to grow relative to other cryptocurrencies.
“So far, on the contrary, the index is declining.
The market is not ready for a reversal yet, there are no serious fundamental factors, as well as technically there are no prerequisites for a global bullish trend,” Zuborev warned.
He added that he expects a correction throughout the current year to levels of about $15-18 thousand in a positive scenario and $9-11 thousand in a negative one.
Of the fundamental factors that can contribute to the market reversal, the analyst called the rise in the value of Ethereum on the news of the “Merger” and after it. As a result, capital will be distributed and Ethereum, “inflated by the news,” can become a catalyst for the growth of bitcoin, Zuborev suggested.
“If nothing out of the ordinary happens on the market in the coming months, then we expect the consolidation to end and the trend to change to a global upward trend in early-mid—2023,” the expert concluded.