Bitcoin Is Down, but Markets Get Stronger | Crypto Markets

Bitcoin Is Down, but Markets Get Stronger | Crypto Markets


Let’s talk about liquidity and volatility. People are asking, well, we haven’t really
moved over the past 10 days or we were in a very narrow price range. Is this a good sign? Well, the matter of the fact is that we just
traded in a very high liquidity price level. The technical terms for
that is “liquidity pools”. It is working like a magnet for the price
when you trade on such a level. The derivatives market options and futures
is helping the Bitcoin price to be more stable. For larger accounts who need to do bigger
trades – it helps them to facilitate the risk better without having too much
of a price impact. Now also people are looking for a breakout,
because we have traded now sideways for quite a few days and weeks even. But we don’t really see
a breakout to the upside. We have seen this massive rejection at $4,200
which is clearly showing that the market is not ready yet for higher levels. We also think that we’re going to dive into
our accumulation zone which is between $3,100 and $3,600. First sort of support we reckon comes in at
around $3,400 which is also a liquidity pool level. Then looking a little bit on the short term
sides, people are looking for or seeing these drips lower in BTC dollar which we have seen
over the past few days. This is basically nothing special. It is just the week long hands getting washed
out who bought on the way up to $4,200. These guys sort of need to reduce their risk
and get out of their longs. We have seen very small attempts to break
higher and we saw rejection at $3,900. All in all, this doesn’t help news like Samsung
coming in with included wallet, crypto wallet in their phone or the Facebook stablecoin
which could also announced last week. In general, in a bear market good news or
supportive news getting disregarded and bad news are getting an overweight. In general, we think those news are not having
a price impact to BTC or crypto assets parse, but it’s definitely a step into the right
direction for mass adoption. What’s more important than actual short term
price movement is the volumes that we’re seeing across crypto exchanges
and even on the Bitcoin blockchain. The Bitcoin blockchain hit a new high this
morning of 4.05 transactions per second. You can see it’s been rising throughout the
bear market. And then on volumes we can see that we’re
tracking right now around 25 billion dollars per day across crypto exchanges. It shows that the crypto industry is growing,
that there are more people trading crypto out there. To think that this market only ever surpassed
1 billion dollars per day, in April of 2017, so we’ve come a long long way since then. Let’s try not to get confused
about that short dip. It could easily be reversed. It could go down further, we’re not sure but
we want to try to have a long term outlook on this market rather than just focusing on
what happened today. We’ve been seeing institutional players like
Fidelity and Nasdaq getting into the crypto market and yet it hasn’t really had very much
effect on the prices and the reason for this is that the fundamental updates or the news
don’t have as much impact as the technical analysis and the charts where we can see a
trend in the market that overtakes the fundamental analysis. At the end of the day, bottom line prices
move based on orders, if you have more buy orders than sell orders, the price goes up
and vice versa. So just because we have some sort of a news
event doesn’t necessarily translate into people buying the crypto itself. What’s firmly driving the markets is the technical
analysis and the trend. So right now as we said we’re at the tail
end of that bear market. And once we see indicators pointing to higher
prices, let’s say a breakout above that $5,000 per coin level, that’s the kind of thing that
gets people’s attention. That’s the kind of thing that causes fomo
and then people buy back into the market. But until then we’re kind of on a low burner. If you are trading crypto and want to do it
more efficiently, here are some tips for you from our partner, Trade Santa. Today we will share the first tip. Diversify the crypto exchanges. Everyone knows you should diversify your portfolio
– it both minimizes your risks as well as gives you more opportunities. The same applies to the
exchanges you trade on. First, it allows you to trade more pairs. Second, it gives you more arbitrage opportunities. Third, it decreases security risks,
in case of a hack. TradeSanta makes platform diversification
even easier – no need to do the trades by yourself – just create bots and allow them
to trade on different exchanges. It saves a lot of time, as you do everything
in one place.

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