Is there life after G20 for Bitcoin and altcoins?
It took only a few weeks for the Bitcoin and all altcoins to be driven down the road as the negative news feed poured more fuel all over them. Bitcoin dropped to $7,200, while many were expecting it to hit $6,000 or even lower if the G20 summit would have found more unfavorable solutions for the cryptocurrency market.
These expectations were misplaced. However, it is too soon to say that the crisis is gone now.
Light at the end of the tunnel
Surely, positive news from G20 has somewhat stabilized the situation at the exchange. After the Financial Stability Board (FSB) published its report, Bitcoin grew by $1,200.
And after the news that G20 plans no serious limitations to the cryptocurrency market, Bitcoin grew again and got over $9,000 mark as at 21 March.
That said, one should not expect an additional run-up this month as it happened in December 2017.
Descending tops are largely the dominant pattern on the market. After all, there has been too much negative news recently. One message from G20 is not enough to even out the descending pattern with the growth.
Even though RSI has already secured its standing above 50 points, Stochastic indicators always fluctuate, thus, proving uncertainty of the market.
Many expected the cryptocurrency rate to fall further and operated for a fall. The results, however, were the opposite and traders had to hurry to offset short positions.
Then followed the confusion. Having burnt oneself with the bear-to-sell strategy, traders are not that sure about its efficiency anymore, but changing plans and taking the bull by its horns is premature now.
As we said, there are not many events to support the cryptocurrency growth.
In fact, the market has been silent and experienced a sideways trend. These are mandatory attributes to take a U-turn back to the top. Of course, bad news can reverse the situation significantly, say, if crypto whales start acting unexpectedly.
Ban on cryptocurrency advertisement: consequences
The cryptocurrency market capitalization depends largely on new investments, specifically, the retail investments. Conservative institutional investors still keep distant from this area.
Therefore, bans on ads in Google, Facebook, Twitter – the largest and simplest platforms to attract new players – promise difficulties for the cryptocurrency market and reformatting of the advertisement market in this segment.
On the other hand, IT giants are in fact the harbingers of this regulation.
First rules, frameworks that have never been adopted. Many are scared of these rules as regulations generally lead to lower profits.
Regulations are an important condition to separate risky assets and focus on the market with strong and serious companies and to allow the largest conservative players entering the market.