During this week, some of the most widely recognized traders in the cryptocurrency community claimed that Bitcoin is due to another correction before starting a medium-term rally.
Peter Brandt, a highly experienced FX trader and cryptocurrency market, said in his 43 years of trading, he has not seen any business that has undergone a turnaround after a correction of 80% within two weeks of stability.
In 43 years of trading I have never seen a fall of 82% and be reversed with a 2-week fund. I do not think this will be the first time, but with cryptos everything is possible (although it is not likely) pic.twitter.com/HSPTpahie3
Ethereum is more likely to fall from a wider margin
Alex Kruger, a prominent economist and trader, said at the beginning of this week that Ether is more vulnerable to a correction than in Bitcoin.
2 / ETH vs BTC Selling pressure
– ICO treasury securities: $ 12.5 million per day ETH, $ 1.5 million per day BTC – Exchanges: $ 25 million per day BTC – Miners: $ 6 million per day ETH, $ 13 million per day BTC
"The ETH would remain more vulnerable than BTC for three reasons: double the selling pressure of natural sellers compared to market capitalization, the most shares low of an ETF, many competitors compared to no competitor. "
As a blockchain network focused on the pay based on work trials (PoW), Bitcoin has absolute dominance on the market. But, as a protocol of smart contracts that observes a shift from PoW to a proof-of-stake hybrid consensus algorithm (PoS) Ethereum addresses the competition of EOS, Cardano and Tron -tre PoS smart contracts protocols designed to facilitate large-scale decentralized applications (dApps).
In addition, while the Chicago Board Options Exchange (CBOE) has hinted at the launch of the Ethereum futures market an ETF on Ether is highly unlikely in the near future.
Related: another day, another "denial of the ETF: the SEC rejects 9 ETF proposals on Bitcoin
The Securities and Exchange Commission (SEC) of the States United has previously stressed in its decision to deny nine ETFs from ProShares and Direxion that it is not so we intend to allow any ETF based on the short term futures market, at least until the future Bitcoin market will increase significantly to make an impact deep in the global cryptocurrency market.
Kruger added that the immense selling pressure of Ether in comparison to Bitcoin also increases Ether's vulnerability against sharp market declines. He explained:
"Aggregate: $ 18.5 million ETH, $ 39.5 million BTC, Market cap: $ 30 billion ETH, $ 120 billion BTC, Percent market capitalization: 0.06% ETH, 0.03% BTC Double the relative supply that hits the market for ETH compared to BTC. "
Will the market go through another correction?
In an interview on August 24 with Ran Neuner, said ShapeShift CEO, the exchange of digital goods leader Erik Voorhees that while the bear market is still at stake, the worst part of the correction has come to the term. Based on his point of view, Voorhees said that the low price range of the cryptocurrency market is a viable option for long-term investors.
Related: Bitcoin INTERVIEW Reaching the stability of the 14-month record is "Extremely healthy"
Trader as Brandt and Kruger said during this week that the two-week stabilization period of Bitcoin is not enough for a class of assets to start a medium-term recovery. While Bitcoin recorded the most stable month in August of last year, some months of stability in the region from $ 6,000 to $ 7,000 are favorable
However, it is too early in the recovery process to request a correction. Bitcoin rebounded from $ 6,500 to $ 7,100 in the past week, but has remained in the region from $ 6,000 to $ 7,000 for over three weeks since August 6th.
If Bitcoin and the rest of the market can sustain their momentum throughout September in the $ 7,000 price range and $ 250 billion in market valuation, then it would be possible for the market to start a medium-term recovery without suffering another important correction.
Cover photo by Priscilla Du Preez on Unsplash
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