Winter doesn’t seem to be over yet. Another night of fear for the entire cryptocurrency sector, with Bitcoin which also drags the world downwards DeFi and of altcoin.
The market would appear to have faced another flush of long and high-leveraged positions, which had begun to timidly reappear within the derivatives markets, without spot investors they actually had responsibility in the new bearish wave.
The worst is over? Other waves of ALL well orchestrated by the usual suspects to try to lower the market value of the world of cryptovalue? Let’s try to understand together what is actually happening on the market and what the bottom of this onda bearish which, once again, had the upper hand on the markets for a few hours.
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What is happening on the market? Can we talk about a collapse?
The signs of what then occurred during the night began to form in the late afternoon yesterday, Italian time. The short on major platforms offering very high leverage investments on Bitcoin increased by 700% in a few hours, giving a great hand to bears to overcome first the support of $ 35,000, then that of $ 34,000 and finally that of $ 33,000.
Some grande account who had a position long and therefore bullish was liquidated – and hence yet another chain closing of positions which then contributed to bringing the entire sector down, with critical positions also on Ethereum and on the main ones cryptovalute of the sector.
But what happened? Simple, another day of ALL low-level, which involved the former President of the United States Donald Trump, l’FBI and the now inevitable China, for a market that, however, once again held around fundamental supports.
The FBI recovers millions in BTC, but how?
This was the first news he helped throw in discomfort some investors. The FBI has indeed announced that it has recovered part of the ransom paid in Bitcoin in the case of * ransomware ** from Colonial Pipeline.
In the first hours of the news, a rather unfounded indiscretion began to circulate, concerning the possibility that the FBI could freely do good and bad weather on the Bitcoin blockchain. Actually no. The Bureau he simply got the private keys of the wallet on which the money went.
And how did they discover the wallet? Simple: with a block explorer that we could all use to track the payment. Therefore, nothing unexpected on the blockchain, but simply the police with the most means in the world who, probably after having arrested some of the subjects involved, came into possession of the keys. The Bitcoin blockchain is therefore as secure as it was yesterday.
Trump: “Bitcoin is a scam”
Former US President Donald Trump is no stranger to shoot often unfounded and in territories where it is not so competent. For some time, despite the ban from Twitter, it is back to be heard. And yesterday he also had his say on Bitcoin, calling it a fraud.
Which actually seems to have been triggered by the recent news coming from El Salvador, where Bitcoin will become legal tender, in a country dollarized and which therefore today refers precisely to USD also for the local market.
All this while other countries would seem ready to follow what El Salvador proposes. Only yesterday important political exponents of both Brazil and Paraguay changed their profile photo on Twitter with the famous laser eyes of Bitcoin supporters, a sign of the fact that something is moving, at the top, also in other countries of South America.
Is the crisis over? Or should we still be worried?
At the time of writing this analysis actually bears and bulls they are still fighting, at least on all major cryptocurrencies. There was a small recovery from the lows that were touched in the night, with movements however of type sideways, or sideways without anyone between bears and bulls seeming to be able to win.
Bitcoin fight with all his might to stay on top quota 32.000$, which would appear to have formed as support base under which highly unpredictable scenarios would open at this time. The second of the supports would instead be at high altitude 29.000$, a price that has now been indicated over and over again by various analysts as sweet spot for several institutions that would like to buy BTC at a heavily discounted price.
The altcoin market driven by BTC
When the market on Bitcoin becomes so turbulent, the market for altcoin, with some very rare exceptions, it can only follow. And this is precisely what is happening on the market right now. The whole sector would appear to be in deep red, waiting for BTC’s next moves.
Moves that for the moment seem to be rather uncertain, with volumes still very high on the markets and without that between bears and bulls there is any kind of signal for an armistice. Therefore the utmost caution to decide which markets to enter, because unpredictability will be at the center of the next market hours.
What to do in these market phases?
With a good intermediary, who is able to offer all the tools to ride these phases of volatility, we can also think of trying to take advantage of the short but sudden movements in the price of the main cryptocurrencies.
With Capital.com (here for a free and unlimited demo account), we can go into position long O short with just one click, riding both price trends, not just up Bitcoin, but on all major cryptocurrencies – as this broker offers them 235+ pairs in the price list. And you can also start by investing only 20 euro to have a real account and with all the necessary tools.
Or you can also think about doing what you recommend CZ of Binance, which despite being against his interests, offers a real pearl of wisdom through Twitter.
An unpopular opinion for myself: you don’t have to trade or buy every dip. While this isn’t okay for exchange earnings, HODL is usually a better strategy for most people.
Adding a few hours later another tweet of hope (in our opinion reasoned) for the sector:
Don’t be governed by short-term emotions. Look at the long-term technology trends. Crypto will be everywhere, in due course.
A message to which we follow and which should always be the horizon towards which to look if we have invested – or have continued to invest, in cryptocurrencies.
Are we at the end of the race to the bottom?
Very difficult to say. There has not yet been a clear capitulation and in the next few hours the market will continue to be very lively, with bears that don’t seem to have run out of their cartridges yet. The bulls, however, are showing a certain desire to fight to the death. For those without invested capital, a phase as fun as a great sporting event is about to open.