The global capital of the crypto markets today, additional $ 7 billion lost, since the Bitcoin and altcoin market will continue to fight for support. Here you will read why this is happening now.
Bitcoin is the primary Trading Pair with any other crypto-currency, or tokens to most of the major stock exchanges. If the price of Bitcoin rises, the majority of the other Coins and tokens, sometimes even more than Bitcoin itself.
The same applies also, if the price of Bitcoin drops. Traders will love this volatility – but smaller investors who try to time the market, often lose sight of.
Here are 3 main reasons why the crypto market of Bitcoin is despite the hype to the upcoming half in its most recent slump. Let’s look at the time.
1. The Chinese new year is in front of the door
In two days of the Chinese new year begins, and the whole of China celebrates with great effort. This year will be the year of the rat. China is one of the largest crypto-markets in the world – and, although the crypto-Trading is prohibited within China.
Many Chinese traders have managed to trade on the South Korean and Japanese crypto-markets, in order to circumvent the prohibition in the domestic market.
Arthur Hayes of Bitmex, Bitcoin exchange with the largest Trading volume, has predicted that we will experience a sharp decline in the Bitcoin price and the Trading volume, when the Chinese new year festival begins.
This is due to the influence of the Chinese traders, who make the Celebration of the new year a few days vacation. In the last 24 hours the Bitcoin price has fallen by 2.6%, and there are still two days until the start of the festivities. If this year is in any way comparable with previous years, you could be right in his forecast.
2. February is historically bearish for the crypto markets
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Bitcoin has only been around for about eleven years, but we can analyze the existing market data to forecast the annual cycle. Traditionally, the first quarter was for Bitcoin is always on the decline.
Since Bitcoin is the first crypto-Asset and market leader, correlates each of the second coin heavily with him. Since almost every other crypto-Coin is traded on any major stock exchange against Bitcoin, they are influenced by price changes, both positive and negative, strong.
This means: If we have an event that causes a price decline (such as the upcoming Chinese new year), then many of the Altcoins will suffer a larger decline in comparison to Bitcoin.
Many expect that the upcoming halving of the newly produced Bitcoins will lead before, ultimately, to a price increase. However, it is usually a delayed phenomenon, which makes the prices only really go up if the increasing scarcity of months later felt, because the lower offer is more evident.
3. Bitcoin is currently being accumulated strong battery
Our new report, “Bitcoin in Heavy Accumulation” is out. Read here: https://t.co/DkjedcF3RG pic.twitter.com/UpQotZUTdW— Tuur Demeester (@TuurDemeester) April 18, 2019
The analysts Tuur Demeester of Adamant Capital and Willy Woo of Adaptive Capital are both to the fact that Bitcoin is currently in the case of institutional investors in a strong Akkumuluationsphase.
They argue convincingly that Hedge funds and Bitcoin-whales sale use the walls to keep the price of Bitcoin within an accumulation range of $6,000-$8,000 USD. So you hope so much Bitcoin to receive Exposure as possible before the halving takes place in may.
If the first two Bitcoin-success is an indicator, then we should see a massive increase in price, once the additional scarcity of a reduced block reward for the Miner, the price pressure on the existing Bitcoin increased offer.
After the last halving, we have seen a increase of Bitcoin on the all-time high of 19.891 dollars. Many Bitcoin investors believe that the upcoming half have a similar effect on the price.