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Combined, the cryptocurrency market cap is below $200 billion following last week’s rout. However, the emerging Bitcoin (BTC) industry isn’t slowing down. This is the position of many Bitcoin and cryptocurrency supporters. Given, the market is trying to strike an equilibrium in the short-to-medium term following the eruption of prices in Q4 2017.

As prices correct lower, shaking out speculators and other weak hands, optimists’ figure, institutional-grade investors are accumulating, adding to their bags and HODLing, waiting for prices to edge higher ahead of next year’s halving. Whales are buying the blood, they argue.

Bitcoin is a preferred investment

As long as the Bitcoin network continues to attract investment and ordinary enthusiasts and deep-pocketed firms funnel their hard-earned capital towards purchasing up-to-date, efficient mining gear and new coins are released every 10 minutes as designed, believers should have no reason to worry from market volatility.

Unlike earlier days when 50% of price fluctuation was frequent because of thin liquidity and a low market cap, nowadays there are a lot of players involved. The approval of complex trading instruments as Futures and hopefully Exchange-Traded-Funds (ETF), deepens the liquidity, smoothening unnecessary volatility and attracting apprehensive investors previously discouraged by price fluctuation.

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Bitcoin BTC Volatility
Bitcoin Volatility Monthly Estimate

For perspective, and safe the downturn, BTC’s monthly volatility estimate has tapered and is 2.82%.

Bitcoin BTC Volatility
Bitcoin Volatility over time

Meanwhile, the 252 Day Estimate is 4%.

The rise and rise of Bitcoin

As long as code is law, Bitcoin centralization not called to question, cryptocurrency exchanges permitted to facilitate the exchange of coins and tokens, and users see the value of moving value without intermediaries, digital assets will always be on demand.

Bitcoin is the most secure and decentralized network according to the US SEC. It could be a commodity as classified by the US CFTC, not money, but its use is broad and is gradually competing with Gold as a store of value.

Bitcoin is also head-to-head against leading fiat processors as MasterCard. The more it gains traction; it won’t be any surprise that users who have access to the internet will opt for cryptocurrencies for cheap and instant movement of value availed by independent networks as BTC, not fiat gateways as SWIFT.

Summary

HODL: Bitcoin (BTC) As an Industry Isn't Slowing Down

Article Name

HODL: Bitcoin (BTC) As an Industry Isn’t Slowing Down

Description

Combined, the cryptocurrency market cap is below $200 billion following last week’s rout. However, the emerging Bitcoin (BTC) industry isn’t slowing down.

Author

Dalmas Ngetich

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CoinGape

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cryptocoach

Coingape is committed to following the highest standards of journalism, and therefore, it abides by a strict editorial policy. While CoinGape takes all the measures to ensure that the facts presented in its news articles are accurate.

Disclaimer
The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.



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Dalmas Ngetich , 2019-11-25 20:02:17 ,

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.


While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock


Nick Chong , 2019-11-10 12:00:38

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