The incidence of major cryptocurrencies began last week, and now Bitcoin has broken a critical support level, it Seems that the correction is delayed. In just one week the value of the coins declined by 26.6 percent. Cryptanalysts put forward several theories about the causes of the collapse of the market.
Tonight BTC is trading at 9605 dollars. For the past day the asset has fallen in price almost on 9%, and the index of dominance of Bitcoin is still above 65 percent.
The US government and the fall of Bitcoin?
We will remind, recently the President of the United States of America Donald trump mentioned in his Twitter Bitcoin and altcoins. Trump criticized digital assets, but kriptonite his message was well received. Still the President “advertised for free” the crypt.
I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air. Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity….
— Donald J. Trump (@realDonaldTrump) July 12, 2019
Some time later, the Treasury Secretary Steven Mnuchin also remembered about Bitcoin, calling it the main financial instrument of fraud. Official knows about Libra and not welcomed initiatives Facebook. Mnuchin also said that the operations in the sector of cryptocurrency will be governed by the Network to combat financial crimes (FinCEN), the Commission on securities and exchange Commission (SEC) and the Commission on trade commodity futures (CFTC).
How the market will react?
According to the cryptanalyst under the name Satoshi Flipper, Bitcoin does enough positive factors from the point of view of fundamental analysis.
BTC have a lot of catalysts that can cause the growth of cryptocurrencies in the medium term. I note that now, wall street and institutional investors involved in the stock market much more seriously than before. The impact of digital assets in the world is beginning to strengthen. I expect that in a few years all this will push industry to the point of development where it will become the norm of everyday life.
The famous trader Peter Brandt has a more grim prediction for the future. Brandt believes that we can wait for the next correction, during which the industry will fall by 80 percent. That is the conclusion he came to after analyzing a chart of total capitalization.
Although the breakthrough of the parabola on the chart, BTC still leaves ground for thinking that the situation with the capitalization of clear — could soon be a global correction by 80 percent. A large part of the damage from the dump will accept altcoins.
While the parabola in BTC was subject to different renderings, the parabola in the total market cap chart was loud and clear. Total cap should correct 80%. Most of the damage of the decline will occur to altcoins. pic.twitter.com/DssCIL4H0R
— Peter Brandt (@PeterLBrandt) July 16, 2019
Earlier, analysts were talking about the high probability of a trend reversal after the fall of Bitcoin up to $ 8,000. I would like to cryptocommunist perceived this situation solely as an opportunity to purchase more. The situation on the market follow our cryptodata of hontarov.
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