Is The Sharp Morning Growth Of Cryptocurrencies A Tactical Move Of The Bulls Or A Fundamental Trend?
The general wave of growth has "overwhelmed" digital currencies, most altcoins and tokens demonstrate a double-digit percentage rise in the course of the first four hours of morning trading. At the time of writing, Bitcoin has gained about 3%, the second largest cryptocurrency Ethereum has soared by 6.11%.
The reason for the growth was the news on the release of the White Paper of the global Bitcoin exchange, published by Twitter founder Jack Dorsey.
A well-known entrepreneur will release a decentralized platform for the exchange of open-source cryptocurrencies, through the efforts of the team of his project Square. The main feature of the future exchange with the working name tDEX is fiat exchanges organized according to the type of p2p transfers with the possibility of arbitration disputes.
The reason for the sharp rebound and growth of cryptocurrencies was the fundamental indicators, which improved significantly by the end of the week. In particular, the yield rates of short-term US bonds fell to the lows of the week, which indicates an increase in risk appetite among institutional investors.
This, in turn, led to new highs of the SP500 stock index, at the time of the positive trend of which Bitcoin fell under panic sales.
Panixale did not give speculators the opportunity to enter digital currencies due to fears of "catching a knife", falling under an uncontrolled decline in the market, in which long-term Bitcoin holders did not participate. Blockchain analysis shows that wallets lost only 0.7% of the deposit during the entire November fall.
Speculative bulls have chosen the most suitable tactical moment for purchases – the morning of the first weekend. At this time, the "biggest money" of US traders is leaving the market, and Asian investors have already started their weekend.
The absence of the majority of bidders on the weekend makes the market "thin" in terms of volumes, able to counteract even a minor, directional trend. Judging by the morning groundwork, now we are talking about the desire of bulls to significantly correct the current negative picture of technical analysis.
From the first steps, speculators managed to raise the capitalization above the psychological level of $ 2.5 trillion. On the Bitcoin chart, the growth should end above the 50-day moving average in order to cancel out the negative sales signal for medium-term investors.