The cryptocurrency market has collapsed and many are wondering what will be next? Is it time to get rid of bitcoin before it fell even more or is it time to buy it now? Let’s try to answer this question.
Bitcoin (EXANTE BTC.EXANTE) is back in the spotlight. Only this time, interest in it is due not to the long-awaited growth, but quite the opposite – to the collapse, as a result of which psychological support fell at the level of $ 5000.
It is worth noting that the depreciation of the BTC course does not have a convincing fundamental basis that could justify it. Such sales are much more logical in the context of another successful cyber attack on large stock exchanges or a discovered vulnerability in the bitcoin blockchain, which again raises questions about the safety of its storage. However, there is no such news on the market.
Perhaps the only thing for which you can catch on is hardfork Bitcoin Cash (EXANTE BCH.EXANTE). A scheduled update of the cryptocurrency network took place on November 15, as a result of which two development teams offered incompatible clients – Bitcoin ABC and Bitcoin SV.
Further events developed in action. The Bitcoin SV team, extremely hostile to the rival blockchain, attacked the Bitcoin ABC network during its update. True, to no avail. A few days after hard forks, information appeared on the Web that Bitcoin SV was also attacked by the reorganization of the blockchain and if it was successfully completed all the blocks in the main chain of the cryptocurrency would be declared invalid. Whatever it was and whoever was behind it, the exchanges preferred to take care of investors, freezing all operations in both currencies.
Now a week has passed since the hard forks, but the situation has not changed. Operations are not carried out, dismantling between the developers of Bitcoin Cash continues. There is an opinion that it was precisely the conflict among former like-minded people that influenced the general market sentiment, provoking a bearish rally of the entire industry.
A more interesting version of what is happening is the coordinated sequential organized actions of the so-called cartel, which continues to “beat” on the price positions of BTC. It is believed that their presence in the market began with the launch of Bitcoin futures in December 2017. Since then from time to time the cartel decides to play short.
Why do sales were so significant this time? The fact is that another speculative attack of the cartel, caused by the one-time sale of significant volumes of BTC, was superimposed on the psychological test of the bar, the breakdown of which became a catalyst for panic sales by hamsters.
For a long time, the shy investors were reassured by the idea that the bottom of the BTC was the support of $ 5000, below which it would not go away. When this happened, the reality changed. It turned out that the BTC course may well be much lower than this bar.
As a rule, such movements are very quickly exhaled and then recovery follows. Bitcoin should not be written off exactly because it is still unavailable to institutional investors. Their likely coming next year could be the impetus for renewed growth.
In addition, if the theory of the presence of representatives of the cartel on the market is still true, the next attempt to push the rate can only be made by returning the rate to a local maximum at the level of the downtrend line. The graph shows that it is located in the region of $ 6000. At least up to this level, we recommend buying back bitcoins at the current price.
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