Bitcoin is trading in the channel $6600-6700without fundamental news the first cryptocurrency cannot make a break of the $7000 and the return of buyers to the market. However, experts predict a speedy recovery of the asset price.
Rob Leimer, technical strategist at Fundstrat Global Advisors said that there are signs of an upcoming recovery. With the minimum level reached in mid-June, bitcoin rose 10%. To break out of the descending channel, the first cryptocurrency needs to move above the $7000. This will mean not just a course correction due to oversold, but the beginning of a recovery of bitcoin.
The technical picture
While the currency pair BTC / USD is not ready to leave the downward channel. Growth potential is limited to $6700 (500-day moving average). Once this level is breached, the growth potential will increase to $7000. Bitcoin managed to obtain support at $6400 $6300 (100 and 200-day moving average). Since the 100-day is above the long term 200-day there is a chance that the rate will start to rise again. RSI indicates oversold, so the bulls can gain the upper hand in the market. The Ichimoku indicator shows the lateral movement, bitcoin is trading within the cloud, it is not enough buying activity to move up. Market capitalization is $114 billion.
Previously on this topic in the news:
15.06.2018: Why falling bitcoin? – analysis of Tom Lee
Tom Lee, chief analyst and founder of Fundstrat announced its version why bitcoin is falling. Last month, the cryptocurrency has lost almost 30% of the cost, and for the current year – almost 65%.
In his report, Tom Lee explained that the price decline of bitcoin is the result of the expiry of futures contracts on the futures. In December 2017 on the stock exchanges and the CME the CBOE began offering futures contracts for bitcoin. After analyzing the situation on the market, you have come to the conclusion that each time, shortly before the expiration date of the futures began the collapse of the bitcoin. The founder of Fundstrat commented: “In connection with the expiration of futures the price of bitcoin changes dramatically. We have collected some data and it is very similar to the truth. 10 days before the expiration of the contracts the first cryptocurrency falling by about 18%, and usually returns to the same position for 6-7 days“. Lee explained that the holders can sell large stocks of bitcoin average price, as the contracts near completion, flooding the market.
Lee also noted that this year decreased the number of investments in the cryptocurrency. The taxation of digital asset tax, tighter regulation, allegations of price manipulation in the market – these factors significantly affect the trading volume. If If was not mistaken in his forecast, for 6-7 days, bitcoins should increase again. Previously, he predicted that before the end of the year the digital asset will be worth $25 000.
Trade Commission commodity futures U.S. (CFTC) has started research activities 4 crypto-currency exchanges: Bitstamp, Coinbase, and Kraken itBit – they provide data for CME Group. CFTC investigates, involved platform to the manipulation of prices in the cryptocurrency market after the launch of futures.
14.06.2018: the Value of bitcoin depends on the Tether?
Scientists from the University of Texas conducted its own research and claim that since November 2017 the price of bitcoin is manipulated. And directly related to this is the Tether.
The study’s authors – John Griffin, University Professor and Amin Shams analyzed data portals Coinmarket, Coindesk and data on transactions on the stock exchange Bitfinex. Tether is a cryptocurrency exchange rate pegged to the dollar and, according to the creators, each token backed by real monetary stock. Only in November 2017 were conducted emission of almost 200 million tokens. It would be logical to specify where these funds are and who the investors. Each issue of tokens called pump the price of bitcoin. According to preliminary calculations, it Tether bitcoin is obliged 50% yield.
Using algorithms to analyze data in the blockchain, the researchers discovered that the issue or the rising prices of Tether occurred after the fall of the cryptocurrency market and led to a significant increase in the price of bitcoin.
Tether and Bitfinex
On the market there is a perception that the Tether tokens are printed out of thin air, and then actively change to bitcoins that the creators were assets that could be made available for audit. Exchange Bitfinexwhere you most often buy tokens Tether, no information about the investors and increase in emissions does not. The last audit of the company’s Tether, was held in March 2017, and since then no evidence of its solvency has not been received.
Tether and Bitfinex suspected of fraud. At the time of launch, the issue was 10 million tokens, it is now more than 845 million. Capitalization could not increase for such a short time and pace. This means that the number of tokens may not match the stock of dollars, and if the bubble bursts, it collapses and the cryptocurrency market.
Only investors, even very large, can’t create such a stir or sale of bitcoin. And very likely that a Tether is used to manipulate market prices.
13.06.2018: 3 reasons for the recovery of bitcoin prices
Hacking crypto currency exchange and pressure from the financial institutions has negatively affected the course of bitcoin. However, experts believe that bitcoin will recover, and there are 3 reasons.
The TOP 3 factors that will contribute to the recovery of prices:
The cryptocurrency, which is more than 300 times predicted the collapse and death, a very interesting future. Experts believe that the history of bitcoin is not yet completed, and should expect new highs.