When cryptocurrency begins growth, an expert predicted
The rapid drop in the cryptocurrency market witnessed last week after the disappointing news of the postponement of the decision of the SEC regarding the Bitcoin ETF starts to slow down.
Market capitalization according to Coinmarketcap, are back above $200 billion and now stands at $207 billion Over the past day Bitcoin rose +of 6.49% and is trading at $6439. Ethereum adds +6,93%, reaching $285, but the coin drop for the week still looks very impressive – price dropped more than 23%, justifying once again the opinion of over-the volatility of the cryptocurrency market.
Quotes Ripple also stabiliziruemost at $0,2899, adding +9,74% in the last 24 hours. Next, the fourth by market capitalization coin, Bitcoin Cash trading at $520,12, adding +4,70% per day. Grows and coin EOS, 24 hours adding to the price +of 7.42% compared to $4,71.
Can we consider the current trend the beginning of a recovery?
To answer this question it is appropriate to consider two factors – fundamental, news and technical characteristics of the price movement.
About news, in General the SEC after the market meets the new disappointing data and news background can be described as positive – neutral.
For example, the news that American Express since November of last year officially uses financial technology blockchain xCurrent from Ripple, clearly indicating the beginning of the era of the blockchain in the financial industry. Ripple technology facilitates and accelerates cross-border payments between the US and the UK.
It is important to separate the concept of cryptocurrencies as a useful tool and new technologies and a speculative investment asset. Unfortunately, many only look at the price of cryptocurrencies, and seeing her fall, immediately spread panic that the entire market came the collapse.
This approach is incorrect, because speculation with the price of the coins previously led to feverish growth, it is absolutely not guaranteed real benefits and real-life implementation of these projects. Now the process is reversed – the previously inflated prices are falling, but the technology finally be of practical use, which gives hope for further positive development, although not for all coins.
From the point of view of technical analysis, it is interesting look of the close of yesterday’s daily candle on the instruments: BTC/USD, ETH/USD, XRP/USD that has formed on the chart reversal pattern doji. It can not yet be called a strong buy signal, however, this pricing model warns that the current momentum of the fall is weakened.
If the market at least until the end of the week will remain at current price values, or above, then it will give rise next week to consider buying.
“International Financial Center”