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Bitcoin Suffers Price Decline as Bearish Trend Takes the Upper Hand

The cryptocurrency market was sent tumbling on Tuesday (July 31, 2018) prices of coins declined significantly. The price dip effectively wiped out most of the gains earned in July. Only a handful of the top 100 coins like BNB survived the bleeding market condition that began yesterday and has continued as at press time.

Bitcoin Down to $7,500

Bitcoin is currently down to $7,500 after struggling to hold on to the $7,700 support level at the end of yesterday. It all began in the late morning of July 31 [UTC] when the top-ranked cryptocurrency tanked five consecutive times to take the price from just under $8,200 to $7,500.

At the time of writing this article, Bitcoin has declined by more than five percent in the last 24 hours. Due to yesterday’s price dip, BTC’s weekly performance declined for the first time in July. The top-ranked cryptocurrency is now down by more than six percent in the last one week. Despite the red trading day yesterday, BTC closed out July 2018 with a whopping 22 percent increase.

Bearish Pullback Snuffs Out Bull Rally

All over the cryptocurrency market, the situation remains the same. A robust bearish pullback seems to have snuffed the life out the bullish momentum that had built up over the course of July. Before the start of the decline, many coins had been experiencing sideways trading as analysts pointed to a period of consolidation.

Ethereum is the hardest hit among the top ten coins, losing more than seven percent as at the early hours of the morning, before a slight resurgence saw losses cut to 3.42 percent. While writing this article, both XRP and XLM have begun to show signs of a small recovering gaining a positive 24 trade growth for the first time in almost 48 hours. XRP is most likely boosted by positive news including the attendance of Bill Clinton in Ripple’s upcoming Swell Conference.

Cryptocurrency Bull Run Might be Over

According to Ilya Spivak, senior strategist at IG, the cryptocurrency bull rally might be over. Speaking to Business Insider, Spivak said:

The latest numbers show that close to 78% of IG retail traders are net-long bitcoin, with the ratio of traders long to short at about 3.5 to 1. We typically take a contrarian view of crowd sentiment, and the fact that traders are net-long suggests Bitcoin may be heading lower.

Spivak also said that traders are keeping an eye on the $6,450 price level as a possible bottom that may launch the next price rally. At the time of writing this article, BTC is trading at $7,585.

Do you think this current decline the beginning of another significant bear pullback in the cryptocurrency market? Keep the conversation going in the comment section below.

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Five Reasons Why Experts Say it isn’t Too Late to Buy Bitcoin

In late 2017, Bitcoin and the cryptocurrency market stole the headline in the global business scene. BTC price reached an all-time high (ATH) in mid-December 2017 prompting a mad rush into the market. However, sentiment seems to have died down significantly with the price of BTC losing more than 60 percent since the start of 2018.

Some critics say that the crypto-honeymoon is over. However, anyone familiar with the market knows that it passes through bear and bull run cycles. The following are five reasons given by experts to support the claim that it isn’t too late to invest in the market.

Bitcoin is 2018’s Bear Market

Almost every savvy investor will say that bear markets present a golden opportunity to buy assets for a much lower price in preparation for the next price upswing. Bitcoin is for all intents and purposed the quintessential bear market of 2018.

BTC is currently trading at $7,380 which is still way off its 2018 high of $17,500 in early January. Bitcoin has declined by more than 70 percent on more than one occasion after which the top-ranked crypto always returned to set a new ATH. According to the CEO of Blockchain Developers, Dean Anastos, there is a good chance that Bitcoin will experience another price push that will see it achieve a new ATH.

Cryptocurrency Regulations are Imminent

The slow pace of development on the regulatory front has been identified as a reason for the 2018 cryptocurrency bear market. The year started off with negative policies in India, South Korea and concern from the United States.

However, since the middle Q2 2018, there has been a noticeable softening of some of these negative policies. South Korea is considering legitimizing ICOs once more, and Malta has taken giant strides in establishing itself as a crypto-friendly country. Commenting on the positive regulatory news so far, Myntum founder and CEO, Kevin Barry, said:

The SEC’s announcement that cryptocurrencies like Bitcoin are not securities is a welcome development and will allow for additional mainstream investment. Individuals and businesses can now purchase cryptocurrencies knowing that they are not purchasing a security.

The influx of Institutional Investors

One of the direct consequences of clearer regulations is the influx of institutional investors into the cryptocurrency market. Crypto firms like Coinbase and Gemini have been creating useful products for big-money investors. 2018 has also seen an increase in custodial tools for virtual currency assets.

According to Patrick Gray, the CEO of HashChain Technology:

Major corporations and financial institutions have been investing heavily in cryptocurrencies. These are significant steps taken by some of the most influential companies in the world and a testament to how favorable general public opinion is getting.

Uncertainties and Risks in Traditional Asset Classes

The brewing trade war between the United States and China continues to gather steam, leaving many markets in limbo. In the EU, Brexit is yet to be finalized. Ray Youssef, the CEO of Paxful believes that:

With continued U.S. interest rates tightening, it is sure to put downward pressure on gold and traditional safe-haven assets. Crypto could be the one non-traditional investment that performs well in 2018/2019.

Viable Means of Portfolio Diversification

If traditional assets are getting riskier to invest in, then now more than ever is the time to consider portfolio diversification. Cryptocurrencies constitute a viable alternative investment class. What’s more, they aren’t tethered to the mainstream market.

According to Anastos:

Cryptocurrency helps to diversify asset classes, which has been influential for countries that have suffered from hyperinflation such as Venezuela and Zimbabwe.

Many experts believe that crypto adoption will continue to increase exponentially thereby driving prices upwards as tokens gain more utility. Commenting on this potential, Gray said:

Cryptocurrency adoption is currently 0.2 percent and has been doubling by 100 percent a year. At this rate, the potential and opportunity over the next ten years are vast. Despite some downturns, that kind of growth potential and growth rate shouldn’t be overlooked.

Do you agree with the opinions of the experts that it isn’t too late to invest in cryptocurrencies? Keep the conversation going in the comment section below.

Image courtesy of Coinmarketcap.


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Is This The Beginning of Another Bitcoin (BTC) Bull Run?

$6,900 per Bitcoin (BTC) is the current magic number when you ask any seasoned Crypto-trader in the crypto-verse. This is because they believe that once this resistance level is broken by the King of Crypto, we could be seeing BTC values get to a new zone of between $7,600 and $8,000. BTC is currently trading at $6,717 and up 3.34% in the last 24 hours. If its current momentum continues, we could be breaking the $6,900 ceiling very soon.

Several technical analysis experts have done a good job of analyzing the general direction of the price of Bitcoin in the coming months. But technical analysis goes hand in hand with current events that affect the crypto-markets.

Bitcoin ETF Factor

The general mood and feel from crypto-enthusiasts, is that the SEC will approve the Bitcoin ETFs filing by the CBOE. This is due to the fact that previous ETFs were filed during a period when the rest of the world had not shown signs of regulating the industry. At the moment we have the following countries that have passed laws and/or expressing their will to do so: Malta, South Korea, Japan, Canada, Germany, Thailand, Philippines, just to name a few.

This means that the SEC has seen the global progress of crypto adoption as an investment option and will approve the Bitcoin ETFs. The exact date of an SEC decision is not known, but many believe it will be in August.

BlackRock effect

Just yesterday, the news of the BlackRock investment firm exploring blockchain and cryptocurrencies, caused a spike in the price of Bitcoin (BTC). The value of BTC rose from the levels of $6,200 to those of $6,600 in less than 24 hours. The momentum is still there for BTC is now valued at $6,717.

Other institutional investors

The institutional investors are slowly trickling in to invest in the crypto markets. Coinbase has even introduced its Custody service to securely store the digital assets of high net individuals and the said institutional investors.

One good example of the entry of institutional investors, is the declaration of the Swiss based stock exchange of SIX that they will be creating a crypto-trading platform.

Coinbase effect

The Coinbase cryptocurrency exchange has just received the go-ahead to become a government-licensed broker-dealer platform in the United States. This means the exchange can now list digital assets that are classified as ICO tokens. More investors in the United States will now be able to invest in the numerous ICO tokens available, further boosting the volume of the entire crypto markets. Perhaps this is a new avenue for XRP to be listed on the exchange?

In conclusion, the technical analysis of Bitcoin (BTC) had indicated the King of Crypto had been over-sold last week and a rise in value was imminent. The additional news of BlackRock, Coinbase and Bitcoin ETFs might be the news needed to confirm a new Bitcoin Bull Run in the second half of 2018.

Disclaimer: This article is not meant to give financial advice. It is an opinion piece. The opinion herein should be taken as is. Please carry out your own research before investing in any of the numerous cryptocurrencies available.