Market Update: Bitcoin Price on Life Support?

in cryptocurrency •  7 years ago  (edited)

Hi traders, let's talk about Bitcoin.

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Bitcoin.

  • Here's what's happened in the last week and a half or so:

1.png

  • The market is now running on fundamentals and by fundamentals I am not talking about the technology behind Bitcoin (which gets better and better everyday thanks to innovations like the Lightning Network) but rather on the fundamental sentiment about bitcoin as an investment;

  • The burst of the last bubble as well as tightening regulations and the event of tax season in some major markets (US & UK) has badly affected mainstream investors' confidence in the crypto-currency, leading lots of new money to leave the market as shown by continuously fading volume;

  • In my opinion, the market's next direction in the short term will depend on these factors:

  1. Whales willingness (or not) to keep the price on life support or to push it higher to try to create FOMO;

  2. Altcoins making a come back like we had in March 2017 and bringing more traders into the space;

  3. Mainstream media being able (or not) to resuscitate main street investors' confidence in Bitcoin. We saw such an attempt 4 days ago with CNBC running catchy headlines on Bitcoin being back after the end of tax season:

2.PNG

Unless these factors realize, the market will probably continue being bearish or will keep consolidating at current levels.


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Coins mentioned in post:

CoinPrice (USD)📉 24h📈 7d
BTCBitcoin8055.110$-3.13%16.98%
EOSEOS8.015$-5.26%35.87%
ETHEthereum509.036$-2.71%25.77%
LTCLitecoin127.316$-3.24%9.1%
ZRX0x0.758$-0.85%36.2%

Agreed I see us heading back below 6.5k in the short term before picking up steam (no pun intended) in Q3/Q4.

Sounds about right @rhyscn, wouldn't be surprised to see some consolidation for a while, altcoins going wild first before bringing new money in the space all over again.

Yep. Looks like we are starting a bit of an uptrend now actually.

Yep @rhyscn, things are looking good again, the market still needs to shake off that bear hangover

Interesting. I guess it means it’s not a good idea to buy any alts right now, especially those which appreciated considerably in value over the past few days. And I wonder if it’s a good idea to sell bitcoin right now with the hope of buying it at a lower price later on, I guess not considering that we don’t know the direction of the market yet.

Hi @getrichfast, actually I think altcoins are in a good place to buy right now, look for those that have retraced on both their Bitcoin and USD chart and hold those until the next alt season. As far as Bitcoin is concerned, although I think that last move was pretty weak, there are still a number of factors that could help BTC get momentum. If I had to guess, I'd say altcoins going crazy while bitcoin consolidates would certainly bring back some liquidity in the market. Finally, you have to decide if your BTC is an investment (in which case you want to buy more as it goes down, not sell) or a trade in which case you'll have to determine a trade time-frame and targets and worry about timing the market (which is much more difficult since Bitcoin is trading mid-range). If you have spare money to spend I think some low-hanging alts is a much better play right now :)

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