Regulation by governments
Prolonged winter correction, which lasted about two months, was able to weaken the faith of many investors in cryptocurrency assets. Frightening headlines talked about the “threat” of regulatory action by the governments of South Korea and China, and that is a concern for holders. However, with the passage of time came the realization that the government can not effectively control the possession of digital currencies in their power to regulate the exchanges, which is a very positive thing for users, as the state regulator leading the fight against fraud.
The initial reaction of investors to negative news from China and South Korea only recalls that through the media can influence the minds of people, causing the masses favorable to certain persons information. There were times when wrong translations of articles in Chinese sources was reflected in the behavior of the market. Society only need to set a certain momentum is needed in order to engage investors and get them to obey the laws the crowd.
However, South Korea denied the rumors of any ban, in the news says about the liberalisation of the trade in cryptocurrency in specialized resources and the interaction of banks with cryptocurrency exchanges, which will affect the input and output means users of the sites.
No matter we are talking about stock or cryptologie, people will always be willing to invest in the most speculative areas. The willingness to invest is a sign of a strong market. In January there was a decline in the number of ICO projects, it’s as a consequence of global adjustments in the market – people were not yet ready to invest. With the recovery of the market after the correction, interest began to return. According to the ICO, Watchlist recently updated statistics – throughout the week, has attracted more than $176 million with the help of ICO. These figures do not reflect data conducted by ICO project Telegram – to date collected $850 million of the expected $2 billion investment.
Disappeared negative headlines
CNBC is one of the most famous and influential information and inspection portals for English-speaking investors. Recently broadcast on CNBC can be heard more and more positive statements about cryptocurrencies, began to disappear a skeptical expression. On CNBC even remembered the old forecast Tom Lee – $25,000 for Bitcoin this year, and Kay van-Petersen of Saxo Bank predicts the price in the amount of $100,000 for 1 BTC. There is a change of sentiment in the General flow of information about cryptocurrencies.
The resistance line has not yet broken
Today, the price of Bitcoin reached more than $11600. Talking about the beginning of a strong uptrend too early, the trading volume is small, the strength of growth momentum of prices is not enough for a breakthrough global resistance line. The main battles take place at the level of 0.382 Fibonacci retracement on the daily chart. On the break of the resistance line and a Fibonacci retracement of 0.382 will be possible to speak in the presence of strong directional price movement with increasing volume.