After the Bitcoin exchange rate rose to $ 13.8 thousand, the subsequent adjustment nullified the successes of the previous week. Over the weekend, Bitcoin several times tries to gain a foothold above the level of $ 12 thousand, but so far it can not overcome the strong pressure of the bears. Experts predict the possibility of reducing prices by 30% and name several reasons for the weakening upward momentum.
First of all, market indicators indicated a clear overbought asset, which eroded the bulls’ strongholds and led to a $ 2,000 collapse in less than an hour. Growing investor interest and active cryptocurrency trading have led to increased volatility. Although this is not something special for the cryptocurrency market, it brings its own peculiarities to the cyclical nature of changes, and also allows you to quickly storm new resistance levels.
Many traders also talk about respite, profit-taking for six months and preparing for further breakthroughs. However, some analysts believe that if the adjustment is delayed, this could weaken the bull trend and lead to a serious rollback of the MTC, up to $ 7.5 thousand.
Big sales and preparations for the launch of Bakkt
Although the sharp drop was mainly caused by technical factors, large whale orders also influence market dynamics. For example, on June 30, one investor placed a short position on the Bitfinex exchange on 20 thousand MTC, putting more than $ 230 million to drop prices in the near future. This caused a panic among investors who began to hastily sell assets, intensifying the wave of collapse. During the night, the rate of bitcoin fell from $ 11.9 thousand to $ 10.7 thousand.
Such manipulations could be preparing major players for the upcoming launch of Bakkt and Fidelity trading floors, which should begin work in the second half of 2019. Since they are designed for institutional investors, the market expects a significant jump in the prices of crypto assets immediately after their opening. The whales can lower the rate in advance in order to subsequently receive even greater profits.
Bakkt plans to begin testing its platform on July 22. However, due to uncertainty in the short term, retail traders remain cautious.
The slowdown of the crypto industry
According to analytical data from App Annie, despite the price increase in 2019, the download of applications related to cryptocurrency grew by only 1.82%, and their number by 35% compared to last year. According to experts, this clearly illustrates the differences between the bull market in late 2017 and the current, early 2019.
Since Bitcoin is still largely a speculative asset, there has been a significant increase in interest in trading platforms such as AvaTrade. The company offers a large selection of various cryptocurrencies, low interest on swaps, leverage up to 20: 1 and instant execution of orders. The absence of fees and commissions will allow traders to increase the profitability of transactions. The broker has been operating since 2006 and is accredited in the leading markets of the world.
Analysts also note an increase in the market share of bitcoin, which usually does not happen in a bear market. They consider this a positive signal, which, combined with a positive medium-term trend, indicates optimistic investor sentiment.
We should not forget that, despite the decline, in June, the PTS rate increased by 30%. Therefore, a major pullback may even be useful to stabilize the market and strengthen the foundation for further growth.