Let the bullets fly for a while, why the recent rise does not mean that the bull market has come to a crypto currency

 Let the bullets fly for a while, why the recent rise does not mean that the bull market has come to a crypto currency

This article from the CCN

Translator: Moni

The original link: https://www.ccn.com/trader-why-a-rapid-crypto-bull-run-cant-be-expected-just-yet/

Only a short period of three days, the market value of encryption currency growth of nearly $33 billion, the price of bitcoin is the way the vast dust soared 18%, “easy” to break the $4000 resistance.

However, the spring is really here?

At least in the famous economics, currency traders and encryption technology analyst Alex Krueger (Alex Kr GER) eyes, encryption currency market bull market may have yet to come. He believes that the current encryption currency market just stop down, only this, but only from the current market can not predict the bull market has come. In fact, the encryption money market after a series of struggle, finally did not fall below the major support.

So, the future is likely to challenge the new resistance 1000 billion bits? Who knows. To be sure, there is no reason to expect too much of any wild bull market, the next few weeks and there are still possible prices, now all are still unknown.

The next wave of the bull market? Bitcoin may not be ready

Admittedly, this week’s encrypted currency market movements for many retail investors because they tread on air finally in 2018, the end of the year “to experience the most exciting” of a rebound in prices. With bitcoin prices continue to rise, the price includes coins, and Fang Gerbaud Ethernet bitcoin, other encryption currency cash to achieve strong growth, or basically reached 20% to 40%. One of the most concern is that after the bifurcation of the bitcoin hard cash, because of “force mine warfare” the price fell to $80, but this week has been doubled to $167.

But the problem is that this strong rebound did not reverse the entire middle crypto currency market trend. Not only that, if you analyze the last two months prices, will find that even if the encrypted currency market up to 40%, still did not reach the level in November this year. Last month, the market value is relatively stable in the crypto currency $2000-2200, while the price of bitcoin basically hovering around $6500, but now? Even if bitcoin prices this week to break the $4000 resistance, but compared to the previous price still has shrunk by nearly 54%. More importantly, according to the prediction of Alex Krueger, a crypto currency market in the next few weeks may still fluctuate greatly, but it is difficult to stimulate strong medium-term bull market, not to mention the next round of long-term rebound.

 Let the bullets fly for a while, why the recent rise does not mean that the bull market has come to a crypto currency

For any kind of asset prices suddenly soared, is not a good thing

In fact, for any kind of assets, the price suddenly soared in the short term is not a good thing, because it means that the asset classes in the future may also fell sharply, especially in the sensitive period of a high volatility and uncertainty in the market.

Of course, the rapid rise in asset prices on encryption short-term rebound in the trend is definitely beneficial — at least to avoid the encryption below the market value to below $100 billion in “poor” in 2018. But Alex Krueger believes that now that the money market will be fully encrypted reversal of the trend in the next few weeks is still too early, he added:

“The price of money recently soaring encryption is indeed an indisputable fact. But there may be some people started in bear hunters at present, most money market encryption just stopped down, without any other change, there is no reason to expect more fanatical bull. In addition, many people buy a crypto currency in the bull market, now is still in the locked state, these people seem to be in the short term rise in prices has been ignored.”

If the market can have the encryption currency slow growth will show real signs of recovery, if according to this idea, the best market is likely to happen in the first quarter of 2019. But now, in view of the global market economy instability, and volatility in the market investors reluctant to invest in high risk and high return assets, at least in the short term, the traditional financial sector investors may not allocate too much money into the encryption industry.

On the other hand, the large institutional investors are watching encryption currency market, they are still shilly-shally for market entry. So in the not too favorable to promote the situation, we don’t draw a conclusion easily, do not blindly believe that the bull market has now opened the door.

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