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The cryptocurrency market underwent strong pressure during the first quarter of 2018, with Bitcoin down by just over 50% from the start of the year. Even many Altcoin have seen their fair share of declines, with the biggest losers who matched up 90% over historic highs. The first quarter was full of actions and dramas including exchange hacks, exchange rate suspensions, increased regulation from China, Mt. Gox Bitcoin sales, tax talks and SEC meetings in the United States. Uncertainty has flooded the market due to these events with many cryptocurrency investors insecure if governments would prohibit cryptocurrencies, or simply tighten the regulations on initial coin offerings (ICOs).
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Now the encryption projects of smaller markets may soon face liquidity problems, preventing investors from selling out of their positions. The cryptocurrency market is quite illiquid as it is, and these strong drops do not help, if many investors decide to leave the market and close their positions.
Looking back in history, Q2 is often met with more optimism and bullish sentiment than in the first quarter. Even more so now that we have many things to look at with the inclusion of Bitcoin ETFs and, in particular, the Coinbase Index Fund which will offer investors visibility on all digital assets. Exchanges like QUOINEX, plays an important role using a bank-level security system to protect data and resources.
Furthermore, nations like China seem to be moving in the right direction when it comes to regulation. China has stated that it will soon come into action and begin to settle the cryptocurrency against an absolute ban on digital resources. In addition, China now has a new blockchain fund with $ 1.6 billion, which we have not seen before because 30% of the fund is supported by the Hangzhou city government.
With the new investment products that will soon hit the market, as well as nations around the world that legitimize cryptocurrency with cryptocurrency statements and regulations, it is safe to say that further adoption could be closer than we think. & Nbsp; In addition to the availability of investment products, we also have strong fundamental news to look forward to.
Scalability is a big problem in the cryptocurrency space, and we are seeing the scalability solutions become more mature as they prepare to enter the market in the second quarter of 2018. Many are running on TestNets and will soon be implemented on incoming MainNets. months. This will surely throw positive light on space and will probably solve the biggest problem with cryptocurrency at this time – scalability.
With the launch of scalability solutions for Bitcoin and other cryptographic protocols in the near future, more participants will be attracted to cryptographic space. This is due to the fact that transaction times will be reduced in addition to the reduction in transaction fees. It was a big problem at the height of the bull market, which was very costly to send Bitcoin from a portfolio to another, discouraging the use for trade and commerce between individuals. With Bitcoin Lightning Network, we can expect faster transaction times and significantly reduced fees, making it simpler and cheaper. Schnorr's signatures will also try to replace the existing Bitcoin signature method by combining signature data together. This will free up tons of blockchain space that will help solve the transaction backlog and high transaction fees.
The proof is in the pudding
An even more bullish sentiment goes along with the fact that many people are losing confidence in the legal currency. Places like Venezuela are going through a currency crisis with the United States that is not exempt from the idea. Many in the United States are recovering the monumental federal deficits that jeopardize the value of the dollar. Perhaps people could look to a valuable digital shop like Bitcoin to act as a cover against the fiat currency along with materials like gold and silver
From a price point of view, looking back in history, we tend to see a more positive upside in Q2 leading to Q3. Between April and June 2016, we saw Bitcoin go on a bull run, earning over 80% to just under $ 800. The same kind of price action can be reviewed from early April to mid-June 2017, when Bitcoin started another race, earning a little more than 170% this time, reaching another historical high just dropped by $ 3,000.
Past performance is no guarantee of future results, but perhaps the action on Bitcoin prices could follow its historical trend and get us out of our current bear market. Currently, technicians are not favorable to the bulls with a clear bearish trend shown in Bitcoin. The volume is also very poor for any attempt at bullish action and seems to only give more liquidity to short sellers to capitalize on a malicious encrypted market. Bitcoin has also seen what is known as a "cross of death" when the 50-day moving average crosses below the 200-day moving average. Many traders consider this as a very bearish signal with others who believe that bearish moves have already been priced, in anticipation of such an event.
Although many positive aspects are at the horizon in the cryptocurrency space, I still feel as if the current bear market was not over yet. From a technical point of view, many Altcoin have yet to form accumulation models and could be dragged even further if Bitcoin were to reach its next support around $ 6,000. The recent price increases were filled with little or no volume during the first quarter of 2018, leading to violent downward dumps, most likely due to weak purchasing side pressure and negative market sentiment. As of now, any bullish action appears to be the result of shorts covering their positions and waiting for greater liquidity to return to their short positions.
Leading us to the point where I believe we are currently, the downside, where supply is higher than demand, causing a sell-off or market downturn. Until the pressure of the sales side does not give up, I would not be surprised to see Bitcoin continue its downtrend and find support in around $ 3500-4500, allowing the asset to find solid support and perhaps form an area. of accumulation where we can exchange the range-bound in preparation for the next bull's cycle. I expect the price to rebound hard if it falls below $ 4000 as it would carry a large number of buyers and the price of Bitcoin could reach $ 35,000 by the end of this year or the third quarter.
Summary
By reducing costs, reducing transaction times and implementing ease of use, Bitcoin looks mature for an even more powerful uptrend compared to its latest $ 20,000 test. In 2016 we saw a bullish move of around 80% followed by a similar bullish move in the same time frame of 170%, about twice as much as in 2016. If we can double the bullish move from 2017 in 2018, we can see a Bitcoin again at $ 15,000 and probably even higher due to the maturity and the interest aroused in space. It is very likely that we will close the year with almost $ 35,000 for Bitcoin. & Nbsp; I am confident about the future of Bitcoin and cryptocurrency and I understand that we are in the early stages of a technology that could radically change the way we live.
Disclaimer: I keep the cryptocurrencies in my portfolio
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The cryptocurrency market underwent strong pressure during the first quarter of 2018, with Bitcoin down by just over 50% from the start of the year. Even many Altcoin have seen their fair share of declines, with the biggest losers who matched up 90% over historic highs. The first quarter was full of actions and dramas including exchange hacks, exchange rate suspensions, increased regulation from China, Mt. Gox Bitcoin sales, tax talks and SEC meetings in the United States. Uncertainty has flooded the market due to these events with many cryptocurrency investors insecure if governments would prohibit cryptocurrencies, or simply tighten the regulations on initial coin offerings (ICOs).
Now the encryption projects of smaller markets may soon face liquidity problems, preventing investors from selling out of their positions. The cryptocurrency market is quite illiquid as it is, and these strong drops do not help, if many investors decide to leave the market and close their positions.
Looking back in history, Q2 is often met with more optimism and bullish sentiment than in the first quarter. Even more so now that we have many things to look at with the inclusion of Bitcoin ETFs and, in particular, the Coinbase Index Fund which will offer investors visibility on all digital assets. Exchanges like QUOINEX play an important role using a bank-level security system to protect data and resources.
Furthermore, nations like China seem to be moving in the right direction when it comes to regulation. China has stated that it will soon come into action and begin to settle the cryptocurrency against an absolute ban on digital resources. In addition, China now has a new blockchain fund with $ 1.6 billion, which we have not seen before because 30% of the fund is supported by the Hangzhou city government.
With the new investment products that will soon hit the market, as well as the nations around the world that legitimize cryptocurrency with the talk of cryptocurrencies and regulations, it is safe to say that further adoption could be closer than we think. In addition to the availability of investment products, we also have strong fundamental news to look forward to.
Scalability is a big problem in the cryptocurrency space, and we are seeing the scalability solutions become more mature as they prepare to enter the market in the second quarter of 2018. Many are running on TestNets and will soon be implemented on incoming MainNets. months. This will surely throw positive light on space and will probably solve the biggest problem with cryptocurrency at this time – scalability.
With the launch of scalability solutions for Bitcoin and other cryptographic protocols in the near future, more participants will be attracted to cryptographic space. This is due to the fact that transaction times will be reduced in addition to the reduction in transaction fees. It was a big problem at the height of the bull market, which was very costly to send Bitcoin from a portfolio to another, discouraging the use for trade and commerce between individuals. With Bitcoin Lightning Network, we can expect faster transaction times and significantly reduced fees, making it simpler and cheaper. Schnorr's signatures will also try to replace the existing Bitcoin signature method by combining signature data together. This will free up tons of blockchain space that will help solve the transaction backlog and high transaction fees.
The proof is in the pudding
An even more bullish sentiment goes along with the fact that many people are losing confidence in the legal currency. Places like Venezuela are going through a currency crisis with the United States that is not exempt from the idea. Many in the United States are recovering the monumental federal deficits that jeopardize the value of the dollar. Perhaps people could look to a valuable digital shop like Bitcoin to act as a cover against the fiat currency along with materials like gold and silver
From a price point of view, looking back in history, we tend to see a more positive upside in Q2 leading to Q3. Between April and June 2016, we saw Bitcoin go on a bull run, earning over 80% to just under $ 800. The same kind of price action can be reviewed from early April to mid-June 2017, when Bitcoin started another race, earning a little more than 170% this time, reaching another historical high just dropped by $ 3,000.
Past performance is no guarantee of future results, but perhaps the action on Bitcoin prices could follow its historical trend and get us out of our current bear market. Currently, technicians are not favorable to the bulls with a clear bearish trend shown in Bitcoin. The volume is also very poor for any attempt at bullish action and seems to only give more liquidity to short sellers to capitalize on a malicious encrypted market. Bitcoin has also seen what is known as a "cross of death" when the 50-day moving average crosses below the 200-day moving average. Many traders consider this as a very bearish signal with others who believe that bearish moves have already been priced, in anticipation of such an event.
Although many positive aspects are at the horizon in the cryptocurrency space, I still feel as if the current bear market was not over yet. From a technical point of view, many Altcoin have yet to form accumulation models and could be dragged even further if Bitcoin were to reach its next support around $ 6,000. The recent price increases were filled with little or no volume during the first quarter of 2018, leading to violent downward dumps, most likely due to weak purchasing side pressure and negative market sentiment. As of now, any bullish action appears to be the result of shorts covering their positions and waiting for greater liquidity to return to their short positions.
Leading us to the point where I believe we are currently, the downside, where supply is higher than demand, causing a sell-off or market downturn. Until the pressure of the sales side does not give up, I would not be surprised to see Bitcoin continue its downtrend and find support in around $ 3500-4500, allowing the asset to find solid support and perhaps form an area. of accumulation where we can exchange the range-bound in preparation for the next bull's cycle. I expect the price to rebound hard if it falls below $ 4000 as it would carry a large number of buyers and the price of Bitcoin could reach $ 35,000 by the end of this year or the third quarter.
Summary
By reducing costs, reducing transaction times and implementing ease of use, Bitcoin looks mature for an even more powerful uptrend compared to its latest $ 20,000 test. In 2016 we saw a bullish move of around 80% followed by a similar bullish move in the same time frame of 170%, about twice as much as in 2016. If we can double the bullish move from 2017 in 2018, we can see a Bitcoin again at $ 15,000 and probably even higher due to the maturity and the interest aroused in space. It is very likely that we will close the year with almost $ 35,000 for Bitcoin. I am confident about the future of Bitcoin and cryptocurrency and I understand that we are in the early stages of a technology that could radically change the way we live.
Disclaimer: I keep the cryptocurrencies in my portfolio
