The cryptocurrency market is once again facing challenges in identifying direction. The price level of approximately $3,900 became a balancing point of the bulls and bears. Some traders are holding out for growth before selling off their assets, while others are holding out for the market to drop before they step in to buy. The existing deficiency of dynamic is somewhat frightening, as it has a resemblance to the October decrease, which concluded in a remarkable sale.
In the course of the earlier two instances, when the general Bitcoin weekly trading range was seen at present-day levels, after a number of days it concluded with elevated volatility. Last October we observed a considerable decrease, and in February of this year there was actually an increase.
It seems that many traders are using a, “wait to see what happens” strategy, based on the decrease of daily Bitcoin transaction levels, which fell to 212K by the start of the week in comparison to an average of 350,000 at the beginning of March. Throughout the earlier 15 months the market had produced a “fear of lull” response, pushing the traders to prepare for a drop in prices.
Are traders now waiting for a new batch of price drops? Altcoin market generally replicates the characteristics of Bitcoin; accounting for the minimum historic capitalization levels overall, the newest correction may come as quite a shock for traders. But, on the flip side, it could also grow to be a turning point, highlighting appealing levels for large investors to make purchases at. Generally speaking, robust price pressure and competition for resources generate an push for development, removing the unneeded components that a market accumulates during the buildup period.
Recent results of Foundation for Interwallet Operability survey revealed that 70% of cryptocurrency holders did not utilize them as a way to make payments during 2018, and when they did, they did infrequently. Furthermore, many individuals continue to be fearful of cryptocurrency transactions. It is worth noting that the study included individuals who reached the level of purchasing cryptocurrencies, while the vast majority have already forgotten about this type of a phenomenon when it faded from the mainstream press.
In the midst of this, the crypto community has high hopes that Telegram and Facebook stablecoins will have the ability to resolve the primary issue of the absence of “drive” on the digital currency market at this time: the difficulties of making use of digital currencies in standard purchases. Nonetheless, it must be realized that Bitcoin and altcoins will not receive their desired boost in this instance, but rather will continue to be for tech-savvy users, who are among the first, but not the main purchasers.