Tom Lee, a well-known analyst and founder of Fundstrat believes that the cryptocurrency market may slowly fade away without further prospects. Lee agreed with the message of one of the Twitter users, who wrote: “The best times of the cryptographic market are behind us, Now he is slowly dying and drying up, while the exchanges, early followers and developers take all the money.
Hanging on the round level
$10K has become the most important psychologically rounded level for Bitcoin. Bulls and bears have been pulling the rope at this level for a long time. The benchmark cryptocurrency still shows a tendency to decrease. Each time people buy it back. It is unlikely that such a scenario has a long-time potential. After all, investors’ nerves will not hold out. Bitcoin cannot get out of the sideways trend for too long.
Longs elimination on BitMEX
At the end of last week, a sharp decline in the BTC exchange rate has already caused a large-scale elimination. This was because of long positions for Bitcoin of $150 million on the BitMEX crypto court. Such “swings” may well result in an ideal storm for the cryptocurrency market.
How long has big capital been in the game?
The dynamics of the last few months may indicate the manipulation of large capital. Obviously, Bitcoin does not have permission to fall below $10K. Although there is potential for this for a long time. Drawdowns used for the opportunity to buy from lower levels. A billion-dollar transaction on an unknown wallet in early September may serve as further confirmation of this process.
Heshreit’s at an all-time high
The price may and will fall in the future. The hash rate in the Bitcoin network is only increasing, having set another record above 100 EH/s last week. Miners are now among the most optimistic market participants. The business has a structure in such a way as not to sell magnetized coins in anticipation of a spike in the cryptocurrency exchange rate. It is also significant support for Bitcoin.
Returning perspectives for Ethereum
The project is flashing in the news more and more often. It is already on the positive side. Market participants approve of the developers’ desire to switch to ETH 2.0. In addition, technical changes have already led to an increase in network capacity by 25%.
BTC and geopolitical disruption
Strikes on Saudi Arabia’s oil facilities, subsequent shocks in the oil market, a blow to the stock market and an increase in demand for safe assets did not affect Bitcoin in any way. This fact caused disappointment and became another drop in the pessimistic piggy bank. However, Bitcoin is not a digital version of gold. So how can previous price hikes be a statistical error? Time will tell. BTC has a certain potential, but obviously not at this stage.
Libra is in disgrace with the officials
No matter how much Calibra CEO David Markus tries to convince officials that Facebook’s cryptocurrency does not threaten the monetary power of governments. Nobody believes him. Data leaks, an authoritarian style of government and a huge user base of several billion people will prevent Libra from entering the market for the foreseeable future. This time, officials will try to use it usefully to improve their own already outdated mechanisms.
(Featured image by Dmitry Demidko)
First published in fxteam, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
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