empty
 
 
28.09.2020 02:34 PM
Cryptocurrency market recovery: what to look for when working with Bitcoin and Altcoin

The past three weeks were difficult, the market was feverish, and weak cryptocurrency assets lost more than half of their value, but everything is different now.

The fear of a market crash that was typical in the first week of September was replaced by a normalization of trading interest among most traders after Bitcoin focused on the side channel of $9,800/$11,500. This step led to the restoration of the emotional state of market participants, and this led to a general recovery of the market.

"Wintering is postponed." With this slogan, many crypto assets of the Altcoin class met a sideways move on Bitcoin. So, the acclaimed DeFi Yearn Finance in the crypto environment managed not only to recover from the collapse by 45%, but it also updated the historical maximum of $39,320 to the price level of $43,910. This step shows that YFI DeFi is still on the rise, and the crypto market is still focusing on a sufficient number of participants and trading volumes.

Without exception, all traders who work closely with crypto assets remember the bitcoin hype of 2017, when its value almost reached $20,000. So now many people are clinging to 2017, as there are parallels in the form of a new round of polarity in this area of investment. The number of cryptocurrency users worldwide has almost tripled over the past two years, from 35 million to 101 million, and analysts estimate that in the third quarter of 2020, the number of accounts on centralized bitcoin exchanges has already reached 191 million.

Antifragility in all its colors, the crypto market is constantly trying to limit, and it continues to grow, gaining widespread popularity of users, thus forcing regulators to work with it shoulder to shoulder.

Now it is difficult to say that in 2021 there will be no Bitcoin, and its value will be equal to absolute zero, the crypto market is there, and it is developing. So why not work on it in the short to medium term, where the yield is several times higher than traditional assets (Forex, Index, Stock market).

Correction or Bull Market?

This question arises for many crypto traders, and 2017 will once again be a topic for discussion. September 2017 and 2020 have a high degree of similarity, where a correction occurred literally on the same day. If you compare the stages of recovery, then there are similar features here, which in theory can give a buy signal.

YFI DeFi, coupled with cash infusions, can still give the crypto market an opportunity for further development, which will pull the cost of Bitcoin up.

This image is no longer relevant

Bitcoin's current development and prospects:

At this time, the optimal fluctuation in the price of Bitcoin is considered to be in the range of $9,800/$11,500, which will allow Altcoin to continue to recover. The flat process may well last for a month, but the fact that the price is held with no new lows will give more chances for a subsequent update of the highs.

This image is no longer relevant

General background of the crypto market:

Analyzing the total market capitalization of the crypto industry, we can see that the Total market is gradually recovering and already amounts to $349 billion, which is $26 billion more than 3 weeks earlier.

Almost half of the correction has already been worked out in the Total market, and this is due to both Bitcoin and Altcoin.

Market Cap: $349,305,780,715

BTC Dominance: 57.7%

This image is no longer relevant

The index of emotions (aka fear and euphoria) of the crypto market is still in the anxiety phase - 43 points, but this is still quite normal. If Bitcoin continues to hold in the flat trajectory above the $10,000 level, the emotional background will quickly normalize.

This image is no longer relevant

Indicator analysis:

Analyzing different sectors of timeframes (TF), we can see that the indicators of technical instruments relative to the four-hour and daily periods signal a purchase due to price fluctuations in the upper part of the flat. The weekly period focuses on the overall upward movement due to the purchase signal since the beginning of the year.

This image is no longer relevant

Gven Podolsky,
Analytical expert of InstaForex
© 2007-2024
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback