Cryptocurrencies Kibosh ?
If not all most of the coins are under pressure and have been trending downwards since the beginning of this year and historically January has not been a great month for cryptos. However, this slump in prices was necessary after the massive bull run seen by Bitcoin and other Alts towards the end of 2017. This definitely provides a buying and hodling opportunity for most of us. Nevertheless, this massive slump has brought people of much '(ir) relevance' back to center stage with reasons drawn out of thin air suggesting that crypto will go kibosh calling it a bubble.
Its good to be wary of all the bubble talk you hear from these pundits, however, its necessary to understand the major cause that being federal money printing.
The case for crypto's is special as they are not stock or bond. It maybe called a commodity by the CME. The butt of all the confusion starts with the fiat pairing to cryptos and not as a value derived from its limited supply and its potential to replace what we call money and banking.
Definitely, this idea of replacing an authoritarian extortion racket collecting a mandatory fee from its citizens, whom all care to earn these rags of paper managed by the self enriching middleman who ultimately benefit at the hands of the citizens doesn't sound good. This is definitely in true legal sense is 'delegation of responsibility' and its seldom that one feels responsible enough to accept and adapt to a change.
There is a lot of FUD surrounding the market. Thanks to the series of events:
- Rumoured Korean Exchange ban.
- The state of US dollar.
- Tether (USDT) and Bitfinex Subpoena.
- The Indian Finance Budget (FM speech on crypto).
These are just a few to name. All these back to back events has lead to panic selling in the market driving the prices lower.
As far as BTC is concerned, in the short term there is a 30%-35% probability we might see the bottom at 8K or 7K levels on charts if there is selloff. However, there is support to hold the current 9K levels. There is a 50% and higher probability on the one bullish scenario in the next few months, however, that is conditioned on unexpected good news about the Lightning implementation and bitcoin transaction fees. This is an optimistic opinion despite the TA still being bearish.
As far as Alts are concerned major deciding factor would be dollar strength and BTC. I shall soon post TA for some alts.
What are your thoughts? Comment down below. I would like to hear what you guys have to say.
Want to prevent a crypto selloff and Hodl for gains? Upvote share it with your friends and resteem. You may also read my other works which might interest you:
- The End of Indian Cryptocurrency Dream? Government to Discourage Use of Crypto’s
- SCOPE OF BITCOIN AND ALTCOINS IN INDIA
- What Does It Take to Be a Cryptocurrency Investor in India?: My Story
- Indian Crypto Exchanges Face The Brunt from Income Tax Department: What Will Happen in 2018?
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