Bitcoin: The Motion Is Life

Bitcoin has almost entirely offset the growth, which the cryptocurrency managed to achieve at the background of Chinese FOMO. Bitcoin has lost more than 5% in the last 24 hours and trades around $7,500.
Alexander Kuptsikevich
Bitcoin: The Motion Is Life

The decline below the 200-day moving average opens the way to $5K, where the previous consolidation area is located. The crypto community suggests that the fall may be due to the capitulation of the miners, which is considered an extremely bearish signal for the benchmark coin. It means that miners have to sell their assets to continue working or even have to exit the market. The last time Hash Ribbons indicator was inverted Bitcoin started the process of declining from $6K to $3K. The news from China about a police raid against the Shanghai office of Binance added “oil in the fire”. Crypto exchange representatives deny this fact. However, the Chinese authorities seem to want to express their position on cryptocurrency trading.

This was bad news. The good news is that at least for a while the sale has stopped. If there are no new selling impulses for some time, buyers may start looking at the asset. It is worth mentioning that the benchmark cryptocurrency is in a tight “institutional ring”. These investors are not interested in the technical prospects of the asset, just in price fluctuations, whose triggers will differ. Still, they will have one thing in common: to make the majority move in one direction while opening the positions in the opposite. So it won’t be boring.

Many forecasts are based on past patterns. This applies mainly to Bitcoin. At this stage of market development, it can be a significant mistake. Waiting for Bitcoin to grow based on halving may be the main mistake now, as the market will play against the event that everyone knows and expects. Besides, halving has only been a few times, and this is very insignificant to make a statistically complete picture. Market participants also remember that historically November was a good month for Bitcoin, but not this time. All this leads us to one basic idea: past trends do not work because the composition of the crypto market has changed radically. In the past, it used to be an “exclusive club”, now there are institutional investors in the market, we have futures traded, regulators and other investment products closely monitor the situation.

This article was written by FxPro
Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.