Bitcoin crashed again over the weekend after a relief rally below $3,500. The demand for stable coins catapulted USDT into fourth place by marketcap, and showed that investors are interested in stepping out of the horrendous volatility that defines the way Bitcoin moves. Bitcoin breached its 50 day moving average and fell below resistance at $4,000. This resistance level is both technical and psychological in nature and gave way to a theoretical price target of $2,500 if the current chart holds. Is this it? Is Bitcoin headed to the dumpster heap of failed investments like tulips and unicorn tech stocks? Not in the slightest.
Bitcoin has faced a barrage of bad news in 2018. I needed to look at new information to formulate a bull thesis. I was faced with some old news including a pickup of investment by traditional investment houses like Goldman Sachs, JP Morgan Chase and even the largest OTC market- the Nasdaq. I was also very interested in the Lightning Network and the most current polling of young people who are interested in cryptocurrency. I was a bit worried by the plans for Goldman Sachs to abandon its trading desk for cryptocurrencies and the hold-off on SEC rulings and the Bitcoin ETF, but I found solace in data about previous plunges.
The bad news is that Bitcoin and the cryptocurrency markets have no reason to go back up. According to many analysists, including Stephen Innes of Oanda group, Bitcoin’s price cannot be justified using current metrics and may continue to fall. I had a hard time accepting Bitcoin at $10,000 and knew we were in bubble territory at $20,000. The problem is really evaluating and selling the technology to those with money and those who are young enough to accept it as currency.
I hold out hope that Bitcoin will be replaced by another cryptocurrency. I hope that this will not be a stable coin, but I can see that being the case if the current bear market continues. The recent layoff of 70% of the Steemit Inc. company tied to the price of STEEM hit home. The most interesting take and the reason for my hope that Bitcoin and the cryptocurrency market will return to prominence is that online retailers will adopt cryptocurrency payments for their goods. CZ of Binance revealed that Jeff Bezos may be the savior of Bitcoin. What do you think?
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Published in my Trybe account I own: https://trybe.one/bitcoin-crashes-below-3500-time-to-pack-it-up/