Topic: [2018-03-31] Bitcoin Records 7% Increase as Cryptocurrency Market Rebounds (Read 146 times)

I have been hurt by the continuing downtrend of Bitcoin and the whole of the cryptocurrency market. Last year when the market was at its highest, I should have converted many of my tokens into Bitcoin and then to fiat money but I was thinking that it can hold on to that level if not to surge even more. I was wrong. Now, am not giving up yet and have not converted any of my holdings to cash. I am still expecting that soon things would get better into the end of the year. Hope springs eternal, as they say.

We all hoping for the best for bitcoin. I know for sure that It will surely rise again

A 7% increase is nothing to celebrate about, right now as of writing this post Bitcoin is still under 7,000$. We cannot be comfortable to this kind of increases as every minute the market can drop and that is what we have seen from its journey down below 10,000$ every time we see a price rally it always ended up in Bitcoin going lower in terms of price. What we need to celebrate is when Bitcoin will start going on a uptrend as right now we are really in a downtrend. Long term reversals for me are more important compared to a temporary price increase.

This is ridiculous. Correlation will always be there between cryptocurrencies, given that they are driven by the same factors. If China bans cryptocurrencies, you can bet your ass that all cryptocurrencies will be in the red.
Correlation is also present in equity markets. If the global macroeconomic outlook turns weak, you can expect selling across the board. You even have a correlation factor which measures how stocks move in relation to the broader market - Beta. There are plenty of stocks whose beta is close to 1.

Proceeding from what has been said by this professor, since in us almost all coins are now repeating the price movements of bitcoin, the market for crypto currency is not yet mature. I also still wonder why the coins are repeating bitcoin traffic on the market. Each coin or token has its own functions, plans, tasks, and all for some reason copy the movements of bitcoin. It seems that it should be vice versa. If bitcoin falls, investors should switch to altcoins and they should grow in price. However, bitcoin goes down in price and all kinds of crypto-currency fall with it. Will it ever change? When will the market become mature in this regard?

If you follow the long term pattern of this market, and then mainly after the MtGox drama, the market has never dipped below its base bottom, and I am fairly sure that we'll maintain that pattern, even after the insane bull run that is currently deflating. It's of course not a guarantee that it won't get broken through, but it's something the market definitely pays attention to. If we do end up dipping below that level, then it just points out how empty the bull run of last year has really been. If the market won't even be able to sustain anything over $6000, it will likely deflate further where nothing will get spared. It's not that current levels aren't somewhat justified after the increased adoption, increasing regulations, etc.

Another factual bit of information giving my theory value, is when we look at the bottom before the bottom early February. Bottom November last year $5555, and the bottom in February $5920. If we look at how much panic was flowing through the market, it would take 10 minutes to dump the price below the $5555 bottom, but it didn't happen.

Why?  Since we just had a huge bubble, I'd be very surprised if we're not in an actual bear market by now.  And if so, it's likely that the price will move similarly to how it did in 2014-2015, but in a higher price bracket.

This bear market most likely won't be exactly like that one, but we can expect people to keep justifying the drop and selling further, just as they tend to do when market trends are established.

It will. I strongly believe that the foundation of this market is the $6000 level, and from this point we might be going up slowly. It will however be a bumpy ride for sure, especially without any new (serious) developments. I see current levels as an Easter present, and I hope people use it as such, because once we are heading up again, people would have wished to buy at current levels -- that's always how it goes. At first people speculate about a further decline, where in an instant they change from a bear to a bull and start buying like there is no tomorrow. Once fomo starts ruling the market again, we might see a longer term increase. If we manage to hit $10,000 again before the end of the month, we have done exceptionally well.

Volume is the key here. As long as the trend will be downward, the volume will decline as well. And this is not good for the whales so they will start pumping again in order to invite disappointed investors back.

I have nothing to say except "I hope that Bitcoin price will rise more and more"

To grow, bitcoin needs to go up from the downtrend channel, above $ 7,000.In the meantime, there is a chance to hold on to $6,000 and work out the flag. It is better to put a stop under $6 500.

After dipping below $6,500, the price of bitcoin has increased 7 percent to $7,100, as the rest of the cryptocurrency market recovered over the past 24 hours.

Since March 30, the valuation of the cryptocurrency market rose from $250 billion to $268 billion, by around 8 percent.

Correlated Movements

On March 29, Cornell professor Emin Gun Sirer stated that a mature market should have assets that are performing independently from each other.

“Indeed, a mature market should be decentralized, with independent coin prices decoupled from each other, each moving in concert with the future prospects of the specific coin,” said Sirer.

For many weeks throughout February and March, the entire cryptocurrency market has demonstrated correlated movements, as the vast majority of both major and minor cryptocurrencies recorded similar gain and loss patterns with extreme volatility.

Today for instance, as the bitcoin price increased by 6 percent, Ethereum, Ripple and Litecoin all increased by the same 6 percent. With the exception of a handful of cryptocurrencies, which have been likely affected by pump and dumps, most of the cryptocurrencies in the global market have all moved in a similar pattern since the major correction occurred in February.

As such, given the extreme volatility in the market and its correlated price movements, it is evident that the market has not stabilized from its recent correction, and thus may need more time to recover from its losses.

The market demonstrated a necessary rebound from the $250 billion mark, and major cryptocurrencies like bitcoin have been able to sustain their resistance levels, even though volumes still remain relatively low across all cryptocurrency exchanges.

History

Bitcoin’s latest correction has been brutal, and it led to millions of dollars in losses for many individuals and institutional investors holding the cryptocurrency on behalf of organizations. But, it is important to acknowledge that identical patterns have occurred in the past, throughout 2013 to 2018.

2018’s bitcoin correction is the third worst correction the cryptocurrency has ever experienced, after two 80 percent corrections it suffered in 2013 and 2014. Both corrections took nearly 12 months for bitcoin to recover from.

The market moves up and down, and volatility is stronger in markets like the cryptocurrency market that have lower liquidity and volume than other regulated markets. The cryptocurrency market was not largely affected by the prohibition of cryptocurrency ads or other news relating to regulation, contrary to the narrative the media has tried to portray. Rather, it was the market simply acknowledging that the price of most cryptocurrencies have increased to a point in which they were difficult to justify based on tangibles and sustainable models.

Tron for example, was worth $16 billion, and neared the valuation of SpaceX. While it is entirely possible for Tron to achieve that market cap again in the future, Tron has only released its testnet this week.

The valuation of most cryptocurrencies were not proportional to the impact they had on the respective industries they were targeting, and the cryptocurrency market experienced a correction because investors could no longer support the prices of them.

https://www.ccn.com/bitcoin-records-7-increase-as-cryptocurrency-market-rebounds-from-yesterdays-losses/