Bitcoin Fell Back Below $4000
FxPro Financial Services Ltd | Mar 26, 2019 08:45AM ET
Bitcoin has returned to the area below $4,000 and during the last 24 hours has lost almost 2%, trading around $3,960. It should be noted that this digital asset price fluctuations have become very moderate.
As for technical analysis, the BTC/USD fluctuations between the $4,000 mark and the 50-day moving average (now around $3,700) are again in our focus. Staying within this range suggests that strong dynamics lovers will have to be bored for some time. A significant signal for investors can only be a sharp breakthrough in the range of $3700-$4000, after which many market participants may join the movement.
Interestingly, daily trading volumes are consistently kept around $9 – $10 billion, whereas in the past this indicator showed significant fluctuations when the Bitcoin price changes. Daily trading volumes for leading altcoins from February 19 (after two consecutive weekend rallies) have grown and consolidated at the achieved levels. Thus, Ethereum (ETH) trading volume grew by 50% to an average of $4.5 billion. XRP trading volume grew by 40% to an average of $0.7 billion per day. Litecoin (LTC) showed an increase of more than 50%, up to $2 billion per day. It is difficult not to associate the growth in the trading volumes with the crypto-fiat hybrid Tether (USDT) with the growth by 70% to an average of $8.5 billion per day.
Enthusiasts can’t stop dreaming. Their ‘New Hope’ is Facebook (NASDAQ:FB) and Telegram cryptocurrencies. Well-known analyst and “Kik” messenger CEO Ted Livingston believe that the purpose of Facebook cryptocurrency is to replace the US dollar. FB has a huge client base, but one should not forget how often the regulation acted as an insurmountable obstacle for crypto projects. Let us recall at least the repeated delays and failures in the launch of Bitcoin ETF. Prior to this, a number of restrictions on the part of regulators were holding back possession and participation in ICO.
Despite the prices decline, long-term investors focus on the positive news, such as Bitcoin hash rate growth, the increase in intraday trading volumes, the expectation of launching new tools for trading, the interest of the largest IT companies in this sector and the blockchain adaptation in the banking sector, which restrains the prices decline.
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