From mid of December , 2018 we are seeing this bear market for crypto currencies, lets see what actually are the reasons for it.
first of all , in such a immature market, technical analysis doesn't hold good. Every support lines are broken when there is a negative news and every resistance line is broken when there is a whale run.
Such a low volume is not really enough to have a proper technical analysis. I am not under estimating the power of technical analysis but just saying it will not really work out in crypto market at these volumes and un-regulated environment.
Some of the recent reasons for this bear market are :-
- Christmas and New year - people liquidate crypto for celebrations and vacations.
- Chinese new year - Same as above, but debatable.
- Korean Exchange FUD - This is getting over by end of Jan,2018.
- Bitcoin Fork delays - having long wait time for btc trascations are negative for business adoption and fork delays make people really unhappy and concerned.
- Bitcoin price drops - In general BTC price drops are making people worried and no fresh funds coming in. This is a catch 22 situation
- Japanese exchange hack - In general security is a big concern in crypto world and regular hack news are pulling common people away from crypto investments.
- Tether audit - US Government is doing a tether audit on few exchanges and this news are giving tension as tether is used as an hedging currency.
- Regulated financial market influence - Regulated financial markets like banking, stock exchanges, Forex are really worried about crypto as it could give a real bad impact for them and they are playing their cards by influencing main stream media.
Many of the above issues are getting addressed and few others will get died by its own and I am hoping to see another bull run cycle before Feb 10th.
what are your thoughts ?
upvote = you agree :)