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2020-04-03 11:08:00

When Bitcoin Drop Will End: Market Analysis

Reasons for the protracted fall of Bitcoin, news background for June. Expectations of traders and miners.

About six months, the fall of bitcoin continues. Following which all alt coins demonstrate anti-records.

If in the first three months this could be attributed to a temporary (and natural) correction, now the bearish trend seems endless. From May 24 to June 10, the Bitcoin exchange rate would seem to have stabilized, remaining in flat (with a range of$7,000 to $ 7,700). But, in recent days, a new wave of dumps has begun, the reasons for which are more and more difficult to find each time.

However, in reality, the market adheres to a negative scenario. At the very beginning of the trend change, emerging in April, the bulls could not overcome the resistance of the bears. Each attempt to break through the resistance line ended in a hard price dump. It is worth noting that the prerequisites for growth each time become less noticeable on candlestick charts.

Why Bitcoin keeps falling

As of June 2020 There are no objective reasons for the further depreciation of the BTC. Local events (hacking of the South Korean exchange, rumors about the introduction of taxes in India, etc.) cannot have such significance on the cryptocurrency market of the whole world (and the time frames of these events do not coincide).

At the same time, the network is filled with a positive news background regarding the future of the blockchain in general, and cryptocurrencies in particular.

Fresh examples of good news for cryptocurrency:

  1. 1. Legalization of 7 cryptocurrencies in Thailand
  2. 2. Legalization of cryptocurrency trading in Poland
  3. 3. Introduction of fiat transactions on the Bittrex exchange
  4. 4. Changing alt coin algorithms to prevent their mining by asics
  5. 5. Getting started with cryptocurrency on the largest streaming service Twitch
  6. 6. The ability to pay for cryptocurrency services in Kaliningrad during the 2018 World Cup
  7. 7. The transformation of one of the towns of Australia into the first digital currency city
  8. 8. Surveys of Europeans also give optimistic results: from 30 to 50% of citizens of Germany and the UK are ready to invest in cryptocurrencies.

The fall of Bitcoin is increasingly explained by conspiracy theories about the conspiracy of a certain “Cartel”, as no other explanation for the disappeared interest of investors and speculators in cryptocurrencies can be found.

What will be the price of bitcoin at the end of 2020.

As early as the beginning of May, the mood of the crypto community remained positive. If in January the real price of bitcoin was seen in the region of $40,000, then by May the expectations fell to $15,000.

Currently, miners and traders are afraid of maintaining a downtrend for 1-2 years (as it was in the past).

Those for whom the crypto world is a hobby continue to hold (store coins) until better times. The rest try to fix the profit in fiat (USD, EURO, Rub.) For short periods.

There is hope that the market will once again go against the expectations of the players, and, when the next minimum is reached, a change of trend will nevertheless occur.

Only one thing can definitely be said: the potential of cryptocurrency in general, and bitcoin in particular, is far from exhausted. Even with the status of a speculative coin, it remains attractive to tens of thousands of entrepreneurs.

There will definitely be a change in trend (this is the law of cyclical markets). But here is how much by this time the cost of btc will fall, one can only guess.

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Damian

Damian

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I have been trading Forex for more than 5 years, mostly with manual and automatic trading. I set up advisors for round-the-clock automated trading. I'm sure I can help to establish your trading skills....

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