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.
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Bitcoin Surges After Tesla Bought $1.5 Billion Worth of BTC
The sudden rise of Bitcoin has been connected to the decision taken by the Tesla electric car company to buy $1.5 billion worth of Bitcoin.
The company explained in a filing with the Securities and Exchange Commission (SEC) that it bought Bitcoin to diversify its cash returns and more flexibility.
Musk’s Tweets also impacted Dogecoin’s price
Tesla also added that it will start accepting Bitcoin payments for all its products, although this will be based on a limited basis and applicable laws. If the company concludes and starts accepting cryptocurrency, it will make it the first major car manufacturer to accept Bitcoin payments. The company’s founder and Chief Executive Officer Elon Musk has developed an interest in Bitcoin and cryptocurrencies.
He has been tweeting severally about the viability of the Dogecoin (DOGE), which doesn’t have an important market value attached to it.
ur welcome pic.twitter.com/e2KF57KLxb
— Elon Musk (@elonmusk) February 4, 2021
Few hours after endorsing Dogecoin, the cryptocurrency rose by an impressive 50%. But regulatory authorities are still concerned about the risks in cryptocurrency investments, with several regulatory bodies warning traders and investors they could lose all their money from crypto investments.
But for Tesla, the company decides to diversify its funds and increased its cash returns. However, Tesla also warned investors about the volatility of Bitcoin’s price in its SEC filing. According to the SEC…
XNO Token of Xeno NFT Hub listed on Bithumb Korea Exchange
Hong Kong, Hong Kong, 25th January, 2021, // ChainWire //
Xeno Holdings Limited (xno.live ), a blockchain solutions company based in Hong Kong, has announced the listing of its ecosystem utility token XNO on the ‘Bithumb Korea’ cryptocurrency exchange on January 21st 2021.
Xeno NFT Hub (market.xno.live ), developed by Xeno Holdings, enables easy minting of digital items into NFTs while also providing a marketplace where anyone can securely trade NFTs.
The Xeno NFT Hub project team includes former members of the technology project Yosemite X based in San Francisco and professionals such as Gabby Dizon who is a games industry expert and NFT space influencer based in Southeast Asia.
NFT(Non-Fungible Token) technology has recently gained huge focus in the blockchain arena and beyond, making waves in the online gaming sector, the art world, and the digital copyrights industry in recent years. The strongest feature of NFTs is that “NFTs are unique digital assets that cannot be replaced or forged”. Unlike fungible tokens such as Bitcoin or Ether, NFTs are not interchangeable for other tokens of the same type but instead each NFT has a unique value and specific information that cannot be replaced. This fact makes NFTs the perfect solution to record and prove ownership of digital and real-world items like works of art, game items, limited-edition collectibles, and more. One of the ways to have a successful trading…
Wisebitcoin Launches Professional-Grade Crypto Exchange
Infrastructure is developing rapidly in the cryptocurrency industry, but the recent launch of the Wisebitcoin cryptocurrency exchange is nonetheless significant in terms of the immediate value it provides to cryptocurrency users. That’s because the exchange has had a beta version available since 2018 while continuing further developments in stealth mode, and already serves over 1.2 million end users with $6+ billion in 24 hour trading volume at the time of its official launch.
In addition to the large user base and deep liquidity, Wisebitcoin also stands out by offering up to 100x leverage to margin traders, with the ability to open a long or short position in their futures market. In the current bullish environment, leverage is a key way that experienced traders increase their exposure and try to profit from volatility.
For example, if a user opened a long position on ETH on January 2nd at a price of $750, they could have greatly multiplied their profits with even a small amount of leverage such as 5x as ETH reached over $1,100 within 48 hours. A simple unleveraged position would have netted $350 in profit, but a 5x position would have netted $1,750 and a 100x leveraged position would have netted an incredible $35,000 in profits from an initial investment of just $750.
Beyond leverage, Wisebitcoin additionally offers a simple and…