Cryptomarket was bought on dips
September 14, 2018 @ 15:13 UTC
The total capitalization fell to $186 bln at one point on September 12; an especially strong decline was in the Ethereum (ETH). The second largest cryptocurrency fell to $170, the lows since July 2017.
However, this drawdown attracted the interest of buyers. Soon the ETH reversed upward and the whole market in general began gradually to level up, its capitalization recovered to the levels above $200 billion.
The benchmark cryptocurrency Bitcoin (BTC) added about 2.5% over the last 24 hours and now trades close to $6.500. Top-10 cryptocurrencies show a growth from 3% to 16%.
According to Michael Patterson’s observations from Bloomberg, the crypto market shrank by 80%, which is more than 78% that the Nasdaq lost after the dotcom bubble collapse.
Digital assets are clearly supported by some subconscious perception of investors that they have not yet played their speculative potential: on the one hand, not everything, which can give impetus to digital money, is allowed and regulated, on the other hand, not everything, which can and should be expelled from the new market, is prohibited.
The logic of bubbles is unknown to anyone, but the collective unconscious often takes precedence over retail investors, and here it is necessary to understand: digital assets after the sale do not disappear, but just change the owners.
If large investors really bought digital currencies within a year, they will decide whether a new rally will happen or not. From the news background, it is obvious that Wall Street’s interest in cryptocurrency is quite strong.
On the 10th anniversary of the financial crisis, which has spawned the Bitcoin and all the digital currencies behind it, the crypto-community is sad to recall the original idea of P2P payments without the involvement of financial institutions, which eventually stood at the helm of the new money market, immediately sending it from a steep peak, eating out more than $600 bln. of market capitalization. Whether retail investors will believe in prospects of the digital currencies market again, no more depends on technological possibilities of networks, but on the formation of that collective unconscious, on which, certainly, Wall Street has a strong influence.
If we talk about more short-term cryptomarket prospects as a whole and the Bitcoin in particular, the best helper in this is the technical analysis. We saw increased purchases on the dips closer to $6000. In addition, the positive dynamics of the ETH also suggests that there is a strong interest in the purchase of distressed coins. And yet there is too little space for optimism now. The Bitcoin course is very closely sandwiched between the support ($6000) and resistance ($7100) levels. The decrease in swings also reflects the fact that the market is now predominantly in the hands of short-term speculators, while long-term investors do not take active action.