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Bitcoin Quickly Attracts Demand In A Downturn, Buying Pressure Is Growing

Alexander Kuptsikevich

On Friday morning, Bitcoin again tries to climb above $8,000. The decline to $7,500 the day before attracted new buyers, as a result, BTC increases by 5% and trading at arm’s length from $8,000. Once again, the coin was helped by investors seeking to enter the market on drawdowns. A week ago, buyers stepped up around $7,000, now closer to $7,500. Following the first cryptocurrency, as always, the altcoin market is growing: from 4.5% (XRP) to 10% (Litecoin).

Apparently, market participants are no longer afraid of moving large amounts of bitcoins. On May 22, almost 10,000 BTC ($79 million at the current exchange rate) were withdrawn from the Huobi wallet, today 1,000 BTC were withdrawn from the cold wallet of the Bittrex exchange. It seems that the crypto community has realized that these assets just change hands and return to circulation, and not liquidated.

Crypto optimists believe that Bitcoin is now only at the very beginning of a long uptrend. Bitcoin pioneer and co-founder of Gemini Tyler Winklevoss believes that Bitcoin is a digital version of gold, whose market capitalization is about $7 trillion. against $140 billion for BTC at the moment, which indicates the tremendous prospects for the first cryptocurrency. However, you should always remember about the personal interest of the twins, as they own a large number of digital assets.

The crypto analyst Josh Rager calculated that Bitcoin collapsed about 9 times in the past rally. Therefore, the nerves of the bulls will be seriously tested, and with each new wave of correction, the most impatient will be eliminated. For others, it will be a good chance to buy an asset at local minimums.

We have repeatedly noticed that the cryptocurrency market is moving in close accordance with the technical analysis, which in turn was based on the experience of the stock market of the early 20th century. Later, the stock market changed under the influence of very large banking capital and index funds. But at the moment, cryptocurrencies are most attractive for long-term investors, which form an uptrend and for speculators which periodically rock the boat.

This article was written by  FxPro

This article was originally posted on FX Empire