After the growth of the bitcoin rate to $ 13.8 thousand, the faucet bitcoin subsequent adjustment nullified the gains of the last week. Over the weekend, bitcoin several times tries to gain a foothold above the $ 12 thousand level, but so far it cannot overcome the strong how high can cardano go pressure of bears. Experts predict the possibility of a 30% price decline and name several reasons for the weakening of the upward momentum.
First of all, market indicators indicated that the asset was clearly overbought, which eroded the pivot positions of the bulls and led to a collapse of the rate by $ 2,000 in less than an hour. The growing interest of investors and active cryptocurrency trading have led to an increase in volatility. Although this is not something special for the crypto market, it brings its own peculiarities to the cyclical nature of changes, and also allows you to quickly storm new levels of resistance.
Many traders also talk about breathing space, taking half-year profits and preparing for further breakouts. However, some analysts believe that if the adjustment is delayed, it could weaken the bullish trend and lead to a serious rollback of the MTC rate, up to $ 7.5 thousand.
Big Sale & Bakkt Launch Preparation
Although the sharp drop was mainly caused by technical factors, large whale orders also affect the market dynamics. For example, on June 30, on the Bitfinex exchange, one investor placed a short position for 20 thousand BTC, betting more than $ 230 million on a price drop in the near future. This caused panic among investors, who began to hurriedly sell assets, intensifying the wave of the collapse. Over the night, the bitcoin rate fell from $ 11.9 thousand to $ 10.7 thousand.
Such manipulations could be preparing large players for the upcoming launch of Bakkt and Fidelity marketplaces, which should start operating in the second half of 2019. Since they are aimed at institutional investors, the market expects a significant jump in the prices of crypto assets immediately after their opening. Whales can downgrade in advance in order to subsequently receive even greater profits.
Bakkt plans to start testing its platform on July 22nd. However, due to uncertainty in the short term, retail traders remain wary.
Slowdown in the pace of development of the cryptoindustry
According to App Annie analytics, despite price increases in 2019, downloads of cryptocurrency-related apps grew by only 1.82%, and their number grew by 35% compared to last year. According to experts, this clearly illustrates the differences between the bull market at the end of 2017 and the current one, at the beginning of 2019.
Since Bitcoin is still primarily a speculative asset, there has been a significant increase in interest in trading platforms such as AvaTrade. The company offers a large selection of different cryptocurrencies, low interest rates on swaps, leverage up to 20: 1 and instant order execution. The absence of fees and commissions will allow traders to increase the profitability of transactions. The broker has been operating since 2006 and is accredited in the leading markets of the world.
Analysts also point to an increase in bitcoin’s market share, which usually does not happen in a bear market. They see this as a positive signal, which, combined with a positive medium-term trend, indicates optimistic investor sentiment.
It should not be forgotten that, despite the fall, the MTC rate increased by 30% in June. Therefore, a large pullback may even be useful for stabilizing the market and strengthening the basis for further recovery.