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Bitcoin (BTC)’s market outlook now

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Bitcoin

Last November 13th Bitcoin’s price in $6,000 and that was when it took off until it went beyond $17,000 on December 17th and, on the next day, the bears took over the market. It’s been going down since that day. Then November 14th of this year arrived and BTC plummeted, and then it went down again over the next weekend.

It was a slaughter. It went under 5k, so we all thought that 4.5k would be a good support level. It broke it and we thought the same about the 4k level, which it also broke. How low can it go? Will it go all the way to 3k? Maybe even lower, back to the 2014 level of $2000? We hate to give you bad news but it’s just possible.

The market is heavily oversold right now, but that, unfortunately, doesn’t mean it’s about to bounce back. All it means is that selling pressure is very intense. Over the last 24 hours, it’s recovered a little and Bitcoin is higher than 3.5k as we write this, but is this a fluctuation before a new fall or is it going to stay stable for a while now? There’s no way to know.

How Bitcoin market works

So this would be a good time to stop and think about the way the Bitcoin market works so we can visualize the circumstances in which things could improve, whenever they do.

Let’s start with the most obvious thing. This market has no institutional players. Wall Street and the traditional financial system have not overcome their Bitcoinphobia yet. This is a market that’s dominated by retail investors for the most part. Yes, some of them are very rich and can move a lot of money around, but they’re still private citizens, not institutional investors.

Rumors of institutional money pouring into crypto have been floating around the cryptosphere all year long but nothing’s happened yet. This is very important. It’s a big injection of money into Bitcoin, of the kind that only institutions can manage, what could bring about the next bullish market. It’s not the only factor, but it would go a long way. It’s not just about the money. If the world sees how the financial institutions trusting Bitcoin, that will breed a lot of confidence in everybody.

Another hand could come from Silicon Valley investors. Earlier this year, a bull run on Apple stock brought the company’s worth over a trillion dollars. And now it’s happened again, this time for Microsoft, which is now even bigger. These are the kind of investors who understand technology and are willing to trust it and invest in it. It’s the ideal bunch of people to become interested in Bitcoin and other cryptocurrencies and stop the current bear market. They will come into crypto, sooner or later, but when?

One thing is kind of clear: there are no serious predictions signaling an imminent change of trend. The Elliott Wave model needs two more correction waves before the cycle starts again, and some analysts are talking about a three-year-long bear market before it goes back up.

We don’t even know if we already hit rock bottom because, just when the price was headed for 3k, it bounced back, but only to 4k, it didn’t really start a new trend.

So what will happen? We’re pretty sure the market will recover, and reach new heights. That’s what it’s always done. We just don’t know when or how.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

Image Courtesy of Pixabay.

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3 Reasons Why WISE Token Could Be a Massive Winner in 2021

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WISE token

After working in proprietary trading for over a decade, I decided to transition to crypto in early 2017.  Although crypto is significantly different from traditional capital markets, I managed to successfully find a niche for successful and opportunistic trading.  While 2017 was the perfect time to get involved, the past few years have proven to be a bit more challenging as far as generating ROI.

Cryptocurrency traders have spent the past several years searching far and wide for the next big winner.  While the market as a whole hasn’t been very bull friendly, one specific area that appears to be gaining traction is decentralized finance, more commonly known as DeFi.  This area generally refers to the digital assets and financial smart contracts, protocols, and decentralized applications (DApps) built on Ethereum.  The reason why so many crypto entrepreneurs are flocking to this space is that it allows them to create traditional financial vehicles in a decentralized network, outside the meddlesome control of foreign governments.

One extremely popular DeFi project is Chainlink (LINK) which is a decentralized oracle network that provides real-world data to smart contracts on the blockchain.  Chainlink has seen its token price increase by more than 300% year-to-date.    Another impressive project in the space is Kyber Network (KNC) which has seen its token soar from $0.20 at the start of the year to more than $1.60 at present.  Kyber Network’s on-chain liquidity protocol allows decentralized tokens swaps to be…

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Bitcoin

The Pros And Cons Of Cryptocurrency

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cryptocurrency

Many facets of our lives are now digitized––money is no exception. 

Have you noticed that paper money is on its way to being obsolete because so many people receive direct deposit and love the simplicity of their debit card? 

Not to mention, cash carries germs, as we’ve heard lots about during the pandemic. Many businesses have turned to card only options in light of this. 

But what about cryptocurrency?

You probably heard everyone raving about it a few years ago, but the excitement’s calmed down quite a bit. That doesn’t mean that it’s not a viable option you should keep in mind. 

What’s Cryptocurrency? 

Let’s start with the basic definition of cryptocurrency so we’re all on the same page. Cryptocurrency utilizes cryptographic methods and complex coding systems to encrypt sensitive information during data transfers. This protects your funds and personal information on a whole different level. 

These transactions are virtually impenetrable due to the combination of mathematical and technological protocols created and put in place. This aspect of cryptocurrency is what makes it safer. Also, the details of transactions are kept private. No one can see who sent what, etc., because those rigorous mathematical and technological protocols protect it.

The Pros: 

Different From Traditional Banking Transactions

One thing people hate about traditional banks is the fact that they can…

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Bitcoin

As Global Tensions Grow, Bitcoin Price May Go Higher

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BTC Surged Again as A Safe Haven Asset During Global Tensions

  • India – China Border Conflict

After weeks of squabbling and brawling along their long-disputed border, hundreds of Indian and Chinese soldiers engaged in a deadly clash Monday in a river valley that’s part of the region of Ladakh last week. Troops had massed on both sides of the border in recent months in the northern India region of Ladakh and the southwestern Chinese region of Aksai Chin, causing global concerns of a potential escalation between the two.

  • North and South Korea Clash

Last Tuesday, North Korea destroyed the liaison office it jointly operates with South Korea in the city of Kaesong, just north of the demilitarized zone that separates the two countries. 

North Korea also said it would send troops to now-shuttered joint cooperation sites on its territory, reinstall guard posts and resume military drills at front-line areas in a violation of separate 2018 deals with South Korea. Jeong said South Korea will take “immediate, swift and corresponding” steps to any North Korean provocation.

The tensions grown in Asia and the potential “second wave” of coronavirus in the United States may add more difficulties to the global economic recovery. Thus, Bitcoin, as a safe haven asset, attracts more investors to buy and hold. 

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