Bitcoin price to $ 3700 dubious as the current rise for no reason
Reaching a minimum on 15 December at $3150 (quotes Coinbase), bitcoin price managed to bounce from support and demonstrate the rebound, which many perceived as the beginning of new growth. The cost of December 15, has increased by 20.75% and currently is $3778.
At the same time, total market capitalization grew by 19.6%, today it has reached $122 billion. Also continue to rise trading volumes from 15 December this figure increased to 73%, and now it is $19 billion.
The current rebound of the price of Bitcoin, apparently provoked by profit taking on short positions opened the day before. Some players sold the bitcoin at the peak of the rally for $20,000 and earned the fall, taking advantage of the opportunities of futures for bitcoin, launched in the era of hype and become a legitimate way to make money on short trades.
Last year’s rally was due to the fact that people believed in fairy quick earnings and the current correction caused by a poor understanding of the new technology by the majority of traders and investors.
As it happens most often on the cryptocurrency market, after the rise of bitcoin and altcoins grow, repeating its dynamics. The Ripple rate today rose by 20.72%, Ethereum is also increasing by 14.59%, EOS has grown by 36.78%. Although altcoins and growing, price changes are not associated with innovative solutions or innovations in the field of regulation of the market, are just a technical rebound, though, and very volatile in comparison with the classical financial instruments.
It is not only the price but also the volume of trading in cryptocurrency, with a record pace. Yesterday the trading volume of bitcoin has increased by 50%, to $17.9 billion, according to the information portal CoinMarketCap, and today the growth has continued – the rate is $of 19.26 billion. However, most of the transactions can be fictitious, since they can be fabricated by simultaneously placing the same orders. This was the conclusion reached by experts of Transparency of the Blockchain Institute.
The true volume of trading in most pairs is less than 1% of the indicators that are published on websites. With a special bot-strategies, such major exchanges as OKEx, Huobi, HitBTC and Bithumb artificially inflate the figures in order to attract new customers, vpechatlenija large numbers, and also to earnings for listing new coins.
Thus, the current rise of cryptocurrencies should not be taken as the beginning of a new rally, it is premature and dangerous. There is no reason for growth and, most importantly, not enough signals for the formation of a new trend.
From the point of view of technical analysis, the nearest strong resistance level in the pair BTC/USD is $4300 (according to the quotations Coinbase), respectively, with these levels, traders can face a new series of sales and re-testing the levels of the lows this year at $3150 for BTC.
“International financial center”