Bitcoin is declining after two boom months. After witnessing a $ 61 billion decline in market capitalization, the cryptocurrency market is likely to face a bear market in the next few years, a Bitfinex whale warned.
Why is the psychology surrounding cryptocurrencies bearish?
After Bitcoin failed to meet the resistance of $ 10,500, the cryptocurrency market dropped significantly in a short span of time.
The currency has lost important key levels in succession at $ 10,500, $ 9,550 and $ 9,000.
Whales like Joe007 – one of the largest Bitcoin whales on the cryptocurrency exchange Bitfinex, have long warned traders against such a reaction to downside, due to the lack of natural demand and fiat cash flow to Bitcoin support surged in February.
Last week, this whale said:
“Is it going to be 2-3 years to reach an all-time high, really?”
Long-term Bitcoin holders are predicting the cryptocurrency market will enter a correction phase before another extended rally begins, as that will provide the market with a stronger platform to recover. .
A long accumulation period – which the cryptocurrency market has not had with recent increases, allows both traders and retail institutions to navigate a steady stream of money into the market.
It allows creating a solid foundation for an appropriate growth market – as seen in 2016.
Long-term fundamentals for BTC
While halving may not be an optimistic short-term factor for Bitcoin, in the long run it will act as a catalyst for sustained price increases.
Bitcoin relies heavily on supply and demand in the market to determine its value. Therefore, a debate could be raised that the facts that directly affect the supply of BTC will have the greatest impact on its price.
Eventually, when the Bitcoin price recovers with a solid foundation, it will lead to BTC switching to other cryptocurrencies, which will lead to a comprehensive boom of the cryptocurrency market.
Another important fundamental factor for BTC and the cryptocurrency market in general is the emergence of tightly regulated exchanges and custody units.
In the United States, in particular, both recognized and retail investors, a range of options for exchanges and depository units, such as Coinbase, Gemini, CME, Bakkt and LedgerX.
The diversity of trading platforms brings more competition in the cryptocurrency market, and encourages companies in the market to improve to provide an advantage over competitors.
In previous bull markets, one of the main problems was the lack of a reliable and reliable liquidity provider.
Over the past 18 months, the quality of custodians and exchanges has increased dramatically with the entry of key players.
Other factors like the hash rate are still a solid positive factor for Bitcoin.
Despite the recent sharp fall, the Bitcoin network hashrate has reached a new all-time high and shows no sign of stopping.
Maybe you are interested:
Join our channel to stay up to date on the most useful news and knowledge at:
According to CryptoSlate
Translated by ToiYeuBitcoin