Bitcoin is experiencing a new wave of demand around the level of 8 000$

  • And
  • +A

Bitcoin (BTC) and altcoins carefully bathed earlier in the week. However, until now the momentum has not received its development. BTC stopped at the round level of $8000, which is what acts as serious resistance. However, it should be noted that earlier the reference cryptocurrency showed a similar pattern, gathering strength near the threshold level, and then swept on its way several resistance levels.
Wave of demand this spring took place on the circular levels, so a really strong FOMO can begin after exceeding the psychological us $10,000. However, the opposite is true: without growth, the stock market is in danger of falling under a major new selling, as investors who are counting on upward trend “to the moon”, often quickly leave the ranks of the optimists.
It is also worth noting the increase in trade after a drop from 9,000 to 8,000, reflecting the active transition of bitcoin from hand to hand on the pullback from multi-month highs: part records the profit from the previous growth, the other buys on dips. From the technical analysis, you should pay attention to the formation of reversal pattern “head and shoulders”. The drop below 7400 can become an important sell signal for the market, which is very sensitively plays the technical signals in recent months.
On the General background of careful shopping is quite remarkable momentum demonstrated Litecoin. LTC rose for the day by almost 10% and is now trading around $128. A month, “the younger brother of bitcoin” has increased by 62%. This growth is simple: market participants are waiting for halving 6 Aug. Likely, this event is overrated, and as soon as everyone realizes that something large-scale happens, the coin will begin to be sold. However, in the medium term cryptocurrency can demonstrate impressive growth.
According to SimilarWeb, the stock market is now experiencing a new wave of demand, as evidenced by the growth of traffic at major cryptomeria. At the same time, economic uncertainty, trade wars and corrupt political regimes, the expected growth in demand for crypto currencies in Latin America. This is reported already LocalBitcoins. All of these factors together laid the Foundation for the release of digital assets from the “cryptogamy”.
The first time the mainstream boom, many wondered: what provided the growth of cryptocurrencies that returned them to life over and over again after large corrections. It turns out that the key lies in the alternative to the traditional financial system, which appeared after the crisis of 2008. Now, many market watchers say more analogies with the situation that lasted until 2007/08.
All of this is pushing investors to search for alternative instruments for risk diversification, and cryptocurrencies attract in this context, growing interest. The most vulnerable segments of the population of the planet are also looking for ways to cut costs when transferring funds: they are also more attracted by the opportunity to earn easy money on the growth of the market, the extensive use of whales, and the rich man on an inflated FOMO.
It is so that the market can get another chance at the big rally. However, the number of participants and money in circulation will be incomparably more than at the end of 2017. This reduces the chances of an equally sharp (in percent) growth. Part potentially interested in cryptocurrency investors already “in the market”, others – speculators – looking for the right moment to lock in position.
______________
The material is provided,
Company FxPro