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Bitcoin could hit $ 42,000 this weekend, says Augusto Backes



The expiration of Bitcoin options (BTC) this Friday (28) could bring the price of the cryptocurrency to $ 42,000 this weekend. According to trader Augusto Backes, this event may result in a buying movement, boosting the price of BTC.

According to data from Skew Analytics, about 50 thousand contracts, valued at US $ 2.2 billion, expire on Friday. This maturity generally impacts the price of Bitcoin before and after the event. Whether the price goes up or down, the buyers are the ones who determine it.

Backes explained that, when the options expire, investors who operated leveraged, betting on the high, are “obliged” to sell their cryptocurrencies. Therefore, he predicts that these investors will start a new buying movement after maturity.


$ 20,000 Bitcoin

However, the momentary Bitcoin rally predicted by the trader will not be long-lasting. As Backes noted, after the 50% correction in the Bitcoin price, it is possible for the cryptocurrency to trade sideways in the coming weeks or months.

In other words, there should be no major price changes in the coming days.

However, the trader believes that after this period, Bitcoin may be re-quoted in the $ 20,000 zone, which corresponds to the previous top achieved by the cryptocurrency.


“We stayed for several months in a completely insane overbought region (…). Now, we can have a period of falls and laterals. We can approach 20 in the monthly Bollinger Band, which means that the price could go back to testing the 20 thousand dollars per unit. ”

The Bollinger Bands mentioned by Backes are used as indicators of volatility. This metric tells you if the scenario is favorable for the purchase or sale of an asset.

Backs further noted that Bitcoin should not collapse at once as it did in the last correction. He believes that the market “will be slow” 30 to 60 days before a sharp drop.


Altcoins season

In this period of lateralization, the trader believes that investors will turn to altcoins. Bitcoin’s dominance is expected to fall and it will be the turn of other cryptocurrencies to shine.

“I have the expectation that altcoins will be able to rise again. I have the expectation that the market will give us that opportunity for altseason that happens when Bitcoin lateralizes. ”

Looking at this market, Backes said he is optimistic about Cardano (ADA), Ethereum (ETH), Tree Defi (TREE) and Pancakeswap (CAKE).


Read also: Bitcoin and Ethereum are about to resume high, says analyst

Read also: Analyst reveals next prices of Binance Coin, Dogecoin and Cardano

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