The concept of “crypto bubble” at this stage, investors this is not to scare the market has survived the global correction, but managed to recover, at present, Bitcoin is trading around $10000 – $11000. Bitcoin step by step acts out of a position, periodically resting on the logic levels of support and resistance . “Scary” headlines left alone cryptocurrency market – it seemed that the “green light” growth, but At the moment we are seeing how the price is hard to overcome the barrier of $11000 and descends again below the coveted level.
Up to $10,000 Bitcoin price came amid news that Goldman Sachs, JP Morgan, Citigroup and Wells Fargo have started to use the blockchain technology, introducing to the scope of its business. I would say that the news is “so-so”, it is not able to induce the investment-hungry crowd at the global giving funds.
A temporary standstill
To understand why not there is a sharp price movement up, you need to take into account the amount investors lost in the course of the cryptocurrency. Look at two of the most extensive coin – Bitcoin and Ethereum, their holders have lost huge funds on correction and, of course, they want at least to recover the costs (many were in the market for a reliance on non-existent “perpetual growth”). Investors in Bitcoin lost more than 60%, and the holders of ETH – about 45%. If you look at the price history, we can see that currently there is not enough volume for growth.
Now the volume is backed by “weak hands” that are ready to enter the market at any price, hoping to somehow recoup your losses. What is happening in the cryptocurrency market, is the result of slow flow of new investments and attenuation volume. Over the past few weeks the volume at the ETH fell more than 65% and the total number of registrations of new addresses in Ethereum has declined 4.7% since January, says the low interest new investors.
Current holders of kryptonsite can be considered as potential sellers, many of them will be willing to exit the trade as soon as I recoup their losses. The total capital of the stock market currently is about $450 billion, how much of that money belongs to the “weak hands” are difficult to define. One can say that the rapid rise of course people need to be supported by positive news media at least.
Yesterday’s news on Bloomberg about a new pressure of China on captainvalor (financial regulators plan to study carefully Bank account in China and online transactions of businesses and individuals suspected of trade facilitation on offshore platforms with the cryptocurrency.), which came just in time to overcome the price resistance line at $10900, could cool investors and lower the price below the coveted level of resistance. But, looking back at the history of news, we can say that this news is not fundamental – China has long been “extinguished” their exchange sites of their former power, memories, and people, if you want to trade cryptocurrency, then they will do it outside of China without fear of blocking accounts in the country.
What can affect the growth rate of Bitcoin?
Pay attention to the cryptocurrency hedge funds, which are the sources of capital inflows to the market. Global correction of 50% gives a strong potential for investors, because to buy a product for half the net cost is a profitable investment in any kind of trade.
You should pay attention to is that the startup Circle, owned by Goldman Sachs, bought Poloniex that was soon to affect the stock market. Bankers don’t invest in failed projects, this is the essence of the capitalists!…
Meanwhile, we will see the battle of bulls and bears on small trading volumes. Maybe for fans of fast trading now is not the time, but for long-term investment now is a good period because you can buy a cue ball for half the net cost, it is a good investment!