Over the past few weeks, bitcoin has rallied up pretty strongly to cross the $5k mark and it is currently standing at around $5,344 with a 0.86% change in the past 24 hrs. While this price spike has grabbed attention from the general public, who now may want to step into this space. But before you go on buying bitcoin at an already “relatively-spiked” price, you might want to wait for a little bit as the price might be coming down in the $4,600-$4,800 range soon.
Bitcoin (BTC) Moving Down to $4,600-$4,800 Before Moving up to $6,800
Based on this daily fractal we should get another chance to buy $BTC at $4600-$4800 levels before the next run to $6800.
Similarities in both candles and volume. pic.twitter.com/IGivErxz5Q
— Galaxy (@galaxyBTC) April 20, 2019
Fractals are more unreliable than usual patterns, but still shouldn’t be ignored. Typical correction for alts if this happens followed by a stronger recovery once price settles.
Since markets have memories and past patterns are often expected to be repeated, an analysis of the previous trend here hints that the asset will be falling down again to rise back up even more. Although anything can happen in this space, if this analysis is to be believed, one should wait before investing heavily in bitcoin right now.
Bitcoin’s price is the target of most of the discussions in the crypto space. While some people are in the crypto space intrigued by the technology lying underneath, blockchain, and truly believe in bitcoin’s potential to become a global digital currency, many are here just to make a quick buck. For this class, bitcoin’s price is what carries utmost importance rather than the technology. But its price is something that often comes under the radar of manipulation as well.
The overall market capitalization of bitcoin and the entire crypto world is not that big as compared to huge financial institutions and corporations. Right now, the crypto space is not a trillion dollar market nor bitcoin is a trillion dollar asset class. The market cap lies in billions. Due to this small market cap as compared to other institutions, big whales that come into this space use this market for their pump and dump strategies. Huge amounts of bitcoins are bought hence shorting their supply in the market and raising the price. After accumulation, huge dumps by selling at a much higher price creates a surplus of bitcoins in supply and as a result the price decreases. In this way, whales profit from such a small market. Manipulation is a major issue associated with this space and is also one of the reasons why an exchange-traded fund has not been approved by the regulatory body in charge, the United States Securities and Exchange Commission (SEC).
Overall, the asset is maturing with the passing time. It has just been over a decade since bitcoin came into the financial scene. Just like every technological innovation, it needs time to get mature, both in terms of technology and legislation. Only time will tell what will happen of this asset as we move forward.