Skip to main content

Bull Market Early or Bear Market Trap?

For virtual currency investors, the more important question is whether this round of currency price rises is a restart of the bull market or a bear market trap.

Yesterday evening, Bitcoin experienced a soaring price in just one hour. The price rose from the violence of about 6,800 U.S. dollars to a maximum of 8,100 U.S. dollars. It rose by nearly 20% during the day. Under the leadership of Bitcoin, other virtual currencies also ushered in a strong rebound, with single currency gains even exceeding 50%. Faced with the collective warming of the virtual currency market, many investors shouted that "the bull market is back."

According to data from the CoinMarketCap website, Bitcoin's market value increased by nearly 20 billion U.S. dollars within a day, and the entire virtual currency market also experienced general market growth. There was no "seeking" effect. According to the daily transaction volume of Bitcoin exceeding 9 billion U.S. dollars, there should be billions of incremental funds entering the market yesterday, instead of stock funds.

In fact, in the time of the booming of Bitcoin, Bitfinex, a digital currency trading platform, also recorded a number of large purchases. With the increase in buying Bitcoins, many shorts were forced to close their positions, further expanding the market's upward trend. For this phenomenon, Nick Kirk, data director of Cypher Capital, also expressed his approval. At the same time, he also believes that this sharp rebound is more likely to be the response to the release of early regulatory pressures.

Pantera Capital Management, one of the world's largest digital currency hedge funds, said Bitcoin has bottomed out. The 6,500 U.S. dollar is the low point for Bitcoin's bear market. Bitcoin will be above this price for most of this year and may even exceed the record high of 20,000 U.S. dollars last year.

Fundstrat founder Tom Lee also expressed confidence in Bitcoin. He believes that the current Bitcoin P/B ratio and other indicators are almost the same as the end of 2014 bear market, and has formed an important technical correction. Based on this, he stated that the value of Bitcoin may rise more than three times this year and rose to 25,000 U.S. dollars at the end of this year.

Historical data shows that Bitcoin has indeed risen in the second quarter of the calendar year. In the second quarter of 2011, Bitcoin rose as much as 1964%, 36.25% in 2012... 61.98% in 2016 and 131% in 2017.

Of course, Bitcoin OTC volume also shows signs of market recovery. Since March, Bitcoin trading volumes in Canada, Europe, Vietnam, Mexico, and Vietnam have risen and reached record highs.

With the successive admission of major financial institutions such as hedge fund giant Soros and top financial group Rockefeller family, the virtual money market's financial size will be further expanded.

However, it is worth noting that although Bitcoin currently has a strong rise, it is still in a downtrend channel and has not yet been effectively broken. It remains to be seen whether the virtual currency market has actually reversed. Investors should always be vigilant and pay attention to position management.

More importantly, the world's major Bitcoin markets, including the United States, have sought to establish regulatory frameworks. The uncertainty of regulation will inevitably have a greater impact on the short-term development of the virtual currency market. In the long run, an orderly, healthy market can go even further.




Source by Marko Vidrih

Popular posts from this blog

Commoditizing the world

Let's discuss commodities; With the latest Enron situation, it is important to understand the way things work. A commodity is anything useful, especially a transportable agricultural product or mining product. This comes from the Latin word "commoditas" meaning roughly advantage, convenience. So then what is a commodity? Well we consider Gold, Silver, wheat, corn, pork bellies, coffee, etc all commodities. If you look in the back of the WSJ or Investors Business Daily you will see a listing of all the commodities traded on the commodities exchange. Enron made some errors no doubt, but let's not judge all commodity markets in haste. Commodity trading works best when there is a stable instrument of trade. Sometimes the instrument of trade is actually the commodity. If you looked most countries of the world today you would find that there are three basic instruments of trade; money, as in currency, precious metals and gems, drugs; like cocaine, opium, and

Virtual Currency Games

Every little boy's (and many grown men's) dream of making a living by playing video games is edging closer to reality. The recent release of HunterCoin and the in-development VoidSpace, games which reward players in digital currency rather than virtual princesses or gold stars point towards a future where one's ranking on a scoreboard could be rewarded in dollars, and sterling, euros and yen. The story of the millionaire (virtual) real estate agent... Digital currencies have been slowly gaining in maturity both in terms of their functionality and the financial infrastructure that enables them to be used as a credible alternative to non-virtual fiat currency. Though Bitcoin, the 1st and most well known of the crypto-currencies was created in 2009 there have been forms of virtual currencies used in video games for more than 15 years. 1997's Ultima Online was the first notable attempt to incorporate a large scale virtual economy in a game. Players could collect gold coins

Could This Be a Great & Extreme Reversal?

The EURGBP has been on of the best currency pairs to trade since the referendum. And it looks ready to kick off again... False Break Reversal The FBR is one of the great reversal patterns. They show up time and again but can catch us out because we've been conditioned to stay with the dominant trend. It started last Friday with the Harami, inside day. Monday broke lower following through, so it seemed, with the down trend running since July. By the end of the day, it had reversed, leaving behind a long wick that turned the day's trading into a Hammer, one of the best price action reversal candles. Tuesdays price action confirmed the FBR. The rule is that when price comes back above the high of the downside breakout candle, the FBR is set. Earlier sell trades closed and then reversed. That's exactly what we have done. Hikkake An added technical reversal is the Hikkake. It's formed by at least three candles, starting with the Harami. Following the break lower, recovery on