Bitcoin Is Down, but Markets Get Stronger | Crypto Markets

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Let's talk about liquidity and volatility. People are asking, well, we haven't really moved over the past 10 days or we were in a very narrow price range. Is this a good sign? Well, the matter of the fact is that we just traded in a very high liquidity price level. The technical terms for that is liquidity pools. It is working like a magnet for the price when you trade on such a level. The derivatives market, options and futures is helping the bitcoin price to be more stable. For larger accounts who need to do bigger trades, it helps them to facilitate the risk better without having too much of a price impact. Now also people are looking for a breakout because we have traded now sideways for quite a few days and weeks even, but we don't really see a breakout to the upside. We have seen this massive rejection at 4,200 which is clearly showing that the market is not ready yet for higher levels. We also think that we're going to dive into our accumulation zone which is between 3100 and 3600. First sort of support we reckon comes in at around 3400, which is also a liquidity pool level. Then looking a little bit on the shorter term side, people are looking for or seeing these drips lower in BTC dollar which we have seen over the past few days. This is basically nothing special. It is just the weak long hands getting washed out who bought on the way up to 4200. These guys sort of need to reduce their risk and get out of their loans. We have seen a very small attempt to break higher and we saw a rejection at 3,900. All in all, this doesn't help news like Samsung coming in with an included wallet, crypto wallet in their phone or the Facebook stablecoin which got also announced last week. In general, in a bear market, good news or supportive news getting disregarded and bad news are getting an overweight. In general, we think those news are not having a price impact to BTC or crypto assets per se, but it's definitely a step into the right direction for mass adoption.

What's more important than that actual short term price movement is the volumes that we're seeing across crypto exchanges and even on the bitcoin blockchain. So the bitcoin blockchain hit a new high this morning of 4.05 transactions per second. You can see it's been rising throughout the bear market. And then on volumes we can see that we're tracking right now around $25 billion per day across Crypto exchanges. It shows that the crypto industry is growing, that people, there are more people trading crypto out there, you know, to think that this market only ever surpassed $1 billion per day, you know, in April of 2017. So we've come a long, long way since then. Let's try not to get confused about that short dip. It could easily be reversed. It could go down further, we're not sure. But you know, we, we want to try to have a long term outlook on this market rather than just kind of focusing on, on what happened today. We've been seeing institutional players like Fidelity, you know, getting into and Nasdaq getting into the crypto market, and yet it hasn't really had very much effect on the prices. And the reason for this is that the fundamental updates or the news doesn't have as much impact as the technical analysis. And, you know, the charts where we can see, you know, a trend in the market that kind of overtakes the fund. The fundamental analysis. At the end of the day, bottom line, prices move based on orders. If you have more buy orders than sell orders, the price goes up and vice versa. So just because we have some sort of a news event doesn't necessarily translate into people buying the crypto itself. What's firmly driving the markets is the technical analysis and the trend. So right now, as we said, we're at the tail end of that bear market. And once we see kind of indicators pointing to higher prices, let's say, you know, a breakout above that $5,000 per coin level, that's the kind of thing that gets people's attention. That's the kind of thing that causes fomo and then people buy back into the market. But until then, we're kind of on a low burner.

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