Cryptocurrency market is on the rise. The tremendous growth of main cryptocurrency, which is now trading around $8800, has pulled the growth of most altcoins. The total market capitalization is $ 270 billion, plus $ 100 billion from the beggining of may.
And everything seems to be fine. But is cryptowinter really over, as various industry representatives tell us? Arthur Hayes and Tom Lee are sure of this. However, Tom always sees signs of growth, even where there are none.
Several important factors are confusing:
1. Parabolic trend, which raised the quotes more than x2 times, from $4000 to $8000+, almost did not have any fundamental factors. There were announcements, but no specifics.
2. Extremely manipulative market. Recent “haircut” of the BTCUSD chart on Bitstamp from $ 7800 to $ 6200 is just another example. It occurred by orders for only 5000 BTC at a very low price. Prior to this, the impulse from $4000 to $5000 was caused by the simultaneous purchase of 20,000 BTC on three exchanges.
3. If we take google trends as indicative, the surge of interest was similar to the period of mid-November 2018, when the market collapsed. There is no further growth of interest from new potential bidders.
Bulls have just overcome $8400 mark, level of the bull trap form July 2018. Before this breach bitcoin was consolidating for 2 weeks in a fairly wide triangle, a figure of trend continuation. Ths chart looks obscenely bullish, but is seems to get more difficult to go higher and higher. Afther consolidation and probable retest of $8400 the main current short-term scenario for BTCUSD a new upward momentum. Nevertheless if you are out of possition it is quite dangerous to pop up in this trade. New price target will be near $10,000, this level corresponds to the top of the bull trap from a year ago.
However, confusing factors from above practically leave no doubt about the aggressive correction, which will begin at the moment when the majority of players, having felt the FOMO, will invest in an upward movement. It is at that moment that the sales wave will begin, which can easily lower the price of the main cryptocurrency to $6000 and below. This game of cat-and-mouse will begin soon and you should prepare yourself, remember: higher the hopes, farther the fall.
And everything seems to be fine. But is cryptowinter really over, as various industry representatives tell us? Arthur Hayes and Tom Lee are sure of this. However, Tom always sees signs of growth, even where there are none.
Several important factors are confusing:
1. Parabolic trend, which raised the quotes more than x2 times, from $4000 to $8000+, almost did not have any fundamental factors. There were announcements, but no specifics.
2. Extremely manipulative market. Recent “haircut” of the BTCUSD chart on Bitstamp from $ 7800 to $ 6200 is just another example. It occurred by orders for only 5000 BTC at a very low price. Prior to this, the impulse from $4000 to $5000 was caused by the simultaneous purchase of 20,000 BTC on three exchanges.
3. If we take google trends as indicative, the surge of interest was similar to the period of mid-November 2018, when the market collapsed. There is no further growth of interest from new potential bidders.
Bulls have just overcome $8400 mark, level of the bull trap form July 2018. Before this breach bitcoin was consolidating for 2 weeks in a fairly wide triangle, a figure of trend continuation. Ths chart looks obscenely bullish, but is seems to get more difficult to go higher and higher. Afther consolidation and probable retest of $8400 the main current short-term scenario for BTCUSD a new upward momentum. Nevertheless if you are out of possition it is quite dangerous to pop up in this trade. New price target will be near $10,000, this level corresponds to the top of the bull trap from a year ago.
However, confusing factors from above practically leave no doubt about the aggressive correction, which will begin at the moment when the majority of players, having felt the FOMO, will invest in an upward movement. It is at that moment that the sales wave will begin, which can easily lower the price of the main cryptocurrency to $6000 and below. This game of cat-and-mouse will begin soon and you should prepare yourself, remember: higher the hopes, farther the fall.