Bitcoin and the other crypto-market were exposed in the five days since the highs of last week, strong setbacks.
After BTC had reached $ 10,000 to crashed, the leading crypto-currency within 48 hours by 20% and was crushed, as items worth over $ 1 billion in a series of crypto-exchanges were liquidated.
This was also reflected in the Altcoins, the similar, if not even worse loss had to be reported as the market leader.
This Retracement has brought the crypto-market, according to a Top analyst at a crucial level that could determine the medium-term future of the industry.
Bitcoin is approaching a critical turning point
A prominent crypto-traders is that Bitcoin (and so the Rest of the market for crypto-currencies) has approached recently, a “key point” at $8.5 xx.
To illustrate this point, the Trader divides a chart (see below), which marked the 8,500 $-Region as the 50% Fibonacci-return the entire movement – from the lows at 3.150 $ in the year 2018 to the highs to $ 14,000 in the year 2019.
The 50% Fibonacci level from a technical point of view, extremely important, not to mention the fact that the 8,500-$-brand was in the last two years, a relatively decisive Horizontal for the crypto-currency.
The Trader has explained what he expects in the event of a break-through at $8.500 – the Chart shows, however, that this would mark a clear bearish reversal.
However, even if the Chart looks bearish, there are signs that Bitcoin remains strong.
3 reasons why crypto is strong will remain
Analysts believe that there are both fundamental and technical reasons that Bitcoin and other crypto-Assets on the best way to remain strong over the coming months – and that it will not come to a stark reversal as the bears expect.
Some of these factors are as follows:
First, the On-Chain-key figures out of Bitcoin more than ever before, due to the halving.
A comparison of the most important On-Chain-key figures from the time of the halving of the reward of the last block on the 9. July 2016 today is:
The total number of BTC addresses is increased by 234%.The daily active address count of Bitcoin, many say that it is one of the best metrics for determining the Blockchain-use, has increased by 59 percent.The Hash Rate of the Bitcoin network – so the amount of computing power, which is used for the processing of blocks is increased to 6.837%. This is the strong support of the crypto-Miner for the long-term future of the network signals.
These data have prompted the CTO of Glassnode to the conclusion that “when the fundamentals of Bitcoin zoom continues to be a strong and clearly optimistic picture drawing”.
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Secondly, analysts believe that with the continued money printing by Central banks and governments of the intrinsic value of decentralized crypto-Assets, and in particular the BTC, proof.
And finally, a technical indicates confluence to the fact that Bitcoin is ready for its bull market in the coming weeks to resume.