Cryptocurrencies can strongly fall in the summer holidays
The cryptocurrency market shows modest recovery attempt on Friday after a major correction in the Thursday, have pushed the total market capitalization of altcoins are down to $320 billion By the Friday morning market played $20 billion, with no positive catalysts in the short term, the market risks to test new lows.
A Wake-up call for the market was the convergence of the 5-month and 10-month moving averages BTC. In 2014 it is a bearish crossover led to the collapse of the exchange rate of bitcoin (BTC) to 70% with a c $580 to $166. If the month closes with this intersection, there is potential for further adjustment of the reference cryptocurrency, and behind it the whole market of altcoins.
The market sentiment was influenced by a number of negative factors, starting with the launch of the investigation by U.S. authorities for possible manipulation of cryptocurrency traders and investors, and to new hacks, hacker attack on Bitcoin Gold (BTG) and the imposition by the authorities of Singapore warning 8 cryptomeria for selling tokens, have properties of securities.
Spring is coming to an end, and with the greater certainty that rally never happened. Positive expectations the community was divided mainly in spring and autumn rally, but also worth to note that the negative background of recent months was largely associated with the regulatory actions of the authorities, if the summer vacations and traditional holidays officials the pressure on the stock market from regulators is weakened, they can move away from local minima.
The main market-mover last week zcash for (ZEC) for the week fell by more than 20% from $375 to $295 at the moment. On Thursday, one of the main mynarski of cryptocurrency hit a low of $276 in front of the rebound to the current values, which indicates the depletion of optimism around the listing of coins on the exchange, Gemini.
Over the last few months the stock market is experiencing a “crisis of ideas”. The technical development of networks and integration with the physical business is not correspond to the prices soaring on speculative excitement, so in the medium term, still expect a gradual correction of cryptocurrency to levels reflecting the real situation in the sector.