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#Bitcoin Price Analysis

Cryptocurrency Market Facing huge losses. Is it the right time to invest?

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It is always observed that, after a downfall, the cryptocurrency market mostly experiences a correction and regains stability.

Understanding the reasons for the Bitcoin downfall and deciphering the suitability of the investment.

Introduction

Investing in the cryptocurrency market is not any less than, gambling on a higher scale, just that the process is completely online and real-time in nature. It never closes as the cryptocurrency market runs 24/7 throughout the year which makes it highly suitable for the day traders to analyze the investors to track the cryptocurrencies in order to make some profits from them. Trading with cryptocurrencies is an art which can be mastered with consistent practice. It is observed that many of them become millionaires by investing in the cryptocurrencies while on the other hand it is also observed that many enthusiasts have lost their previous savings by investing in the crypto. Therefore it is highly speculative and the newcomers are advised to make an extensive research about the cryptocurrency they are opting to invest in it.

 

The Loop

Is observed carefully the cryptocurrencies undergo a constant cycle. It is observed that initially, Bitcoin leads the bullish market which is followed by the top altcoins which are in turn followed by the other lesser prominent Altcoins. Then huge corrections begin and a new floor price is set for Bitcoin and all the other altcoins as well, then there is no activity in the Crypto space for months together, until and unless another new big cryptocurrency hike is observed. Then the whole process repeats itself.

 

How are stock markets better than cryptocurrencies?

It is estimated that investing in the cryptocurrencies during the market fall, is the best time, as the currencies would regain the Bullish Trend. But there is a lot of difference in investing in a stock market and cryptocurrency because in stock markets the prices not only depend on the market forces of demand and supply but also the successful adoption of their product or service but in case of crypto market solely depend on the demand and supply. As the cryptocurrencies are not backed by any financial asset it is recommended on generalized terms to stay away from it.  

 

The actual reason for the market downfall

On 8th August, the prices steeply fell and the precise reason is pointed towards the decision taken by SEC to postpone the decision regarding implementation of the Bitcoin ETF. The prices experienced almost a 6% fall within a span of 24 hours itself to attend $6300. The proposal to the SEC was the third one put forth by the investment firm, VanEck where they had rejects it’s proposals twice, before. This time they willing to consider the issue and hence probably are taking some time to decide on the matter. In simpler words, they are making sure that this would have any adverse side effects on this highly volatile crypto market.  

Price specifications

The Bitcoin prices have fallen from an intraday of  $7600 to almost $6700 approximately. However, this 6% downfall is nothing when compared to a 30 % downfall which the cryptocurrency market had experienced in April 2017, when Cameron and Tyler Winklevoss had proposed for the Bitcoin ETFs and it was rejected by the SEC. In a nutshell, this decision has even worsened the market conditions.

 

Is a good time to invest?

It is always observed that, after a downfall, the cryptocurrency market mostly experiences a correction and regains stability. The trend can also be applied here and hence this can be a great opportunity for the public as well as institutional investors to invest in Bitcoin and other Altcoins, as they are expected to experience a recovery and increase its value. It is not very unnatural in nature that something takes a few steps back in order to experience a giant leap and thus even holds good for the cryptocurrency space.

 

Disclaimer

Although it is a great opportunity to invest in cryptocurrencies, the fact that constantly needs to be reminded of is that the cryptocurrency market is highly volatile and subject to the market conditions. An investor compulsorily needs to do an extensive background check on the project prior to investing in it. Otherwise, hasty decisions would lead to tons of losses, which is absolutely not viable in this generation which moves on the competitive edge of the technology. An investor should be able to stake the amount which he or she is OK to lose, otherwise, cryptocurrencies is not a suitable place for them.

#Bitcoin Price Analysis

BTC Daily Trading Signals: October 19

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BTC Price remains in a range-bound market. The strong bearish pressure within the range was dominant as BTC witness drawdown.

Dominant bias for Bitcoin (BTC) –Ranging

Resistance Levels- $6800, $6900, $7000

Support Level-$6000, $5900. $5800

 

BTC remains in a range-bound market. The strong bearish pressure within the range was dominant as BTC witness drawdown. Despite a bullish 4-hour opening at $6735.6 on 18th October that led to the high of the day at $6779.9, the bear takeover was confirmed by the next bearish candle. BTCUSD was down to $6609.3 in the support area.

Though $6607 was the low BTCUSD made on 17th October with the current strong bearish pressure, a lower low may be attained at the end of trading session.

 

BTC 4-hourchart

BTC 4-hour chart

 

BTC Price is below the 10 EMA but sits on the 200 EMA. A break below the 200-EMA may see the bear taking BTCUSD to the 6300 area. The stochastic oscillator is in the oversold region but its signal points down which implies further downward price movement within the range.

BTCUSD is in consolidation and trading between $6800 in the upper resistance area and at $6300 in the lower support area of the range. A breakout at the upper area will be good for a long while a breakdown at the lower area suggests shorting the cryptocurrency.

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#Bitcoin Price Analysis

BTC Daily Trading Signals: October 18

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BTC remains in consolidation. Upward movement of the cryptocurrency towards the upper resistance level was made possible by the bullish hammer at $6717.60.

Dominant bias for Bitcoin (BTC) –Ranging

Resistance Levels- $6800, $6900, $7000

Support Level-$6000, $5900. $5800

 

BTC remains in consolidation. Upward movement of the cryptocurrency towards the upper resistance level was made possible by the bullish hammer at $6717.60. BTCUSD high of the day was $6794.00 in the resistance area.  Exhaustion to bullish momentum was clearly seen as candles at the area had upper wicks. The bearish pressure was increased with inverted hammer formation. BTCUSD was down to $6674.30 in the support area as the cryptocurrency ranges

 

BTC 4-hourchart

BTC 4-hour chart

 

BTC Price remains below the 10 EMA but above the 200 EMA. The stochastic oscillator is at 23% and its signal points down which implies further downward price movement within the range. A new low at the support area may be attained with the bears’ pressure becoming much stronger

BTCUSD is in consolidation and trading between $6800 in the upper resistance area and at $6300 in the lower support area of the range. A breakout at the upper area will be good for a long while a breakdown at the lower area suggests shorting the cryptocurrency.

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#Bitcoin

Bitcoin surges more than 4% on Bitfinex after a Tether Panic

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The price of Bitcoin experienced a massive surge in minutes on Bitfinex Exchange as the price rose from $6443 to $6732 in just a couple of minutes.

After the major dumping of Tether which happened on 15th October 2018, more and more people are joining the USDT dumping trend by exchanging their stablecoins into cryptocurrencies especially Bitcoin. The traders and investors are doubting that the Tether or USDT token is not backed by US Dollar and the company is being blamed for misleading the investors.

USDT Dumping

Tether which had a market capitalization of over $2.8 Billion came down to just $2 Billion in a couple of days. So in just a couple of days investors and traders removed more than $800 Million from Tether into Bitcoin and other cryptocurrencies.

 

Bitcoin Surges on Bitfinex

The price of Bitcoin experienced a massive surge in minutes on Bitfinex Exchange as the price rose from $6443 to $6732 in just a couple of minutes as more people started to dump USDT for Bitcoin on Bitfinex.

 

Tether is being blamed for scamming investors this year by a lot of people as the people believe that Tether never had the exact amount of USD backed in 1:1 ratio in accordance to the tether supply.

 

What do you think about Tether? Let us know in the comments section below.

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