FxPro: Bitcoin’s decline with enthusiasm
January 29, 2019 @ 16:03 UTC
Bitcoin falls below $3,400 along with the trading volumes growth, which is often a sign of increased interest in sales and can send this currency to this year lows. The main altcoins and crypto market, in general, follow the leader in their decline. More and more experts agree that what is happening at the moment is very similar to the repetition of the summer lull, after which we saw the next phase of the market sale-off.
In the case of maintaining sales pressure and trading volumes growth, the next target for the bears may be as low as $2,000 area.
The situation on the crypto market as a whole is becoming increasingly favourable for the entry of those investors who missed the moment in 2017. For example, at the moment, one Zcash (ZEC) coin trades below $50 versus $876 in early 2018. One Ethereum (ETH) coin is one step away to fall below $100 versus a peak of $1,400 in early 2018.
It is likely that the price of digital assets will become even more “pleasant” for new buyers, but one needs to understand that the historical highs became possible due to the extreme cryptocurrencies’ revaluation, and future growth on the fundamentals may be much more modest.
In addition to the record price decline, it should be noted that the network of one of the main coins for miners in the past, ZEC, still demonstrates the record difficulty of mining. Over the year, it grew by 670% due to the emergence of ASIC devices for mining. The level of difficulty is preserved, as miners do not turn off recently purchased equipment in the hope of prices growth.
On the other hand, traders should remember that the darker the mood and the stronger the sales, the higher the potential and the better the moment to enter the market, for one who does not doubt the viability of this sector. Crypto enthusiasts claim that faith is not completely lost yet.
Alexander Kuptsikevich, the FxPro analyst