Bitcoin market analysis: Are you really suitable for the currency circle?
Yesterday, Bitcoin pulled back more than $3,000 at its peak, which led to an overall decline in the market, and major currencies suffered heavy losses. From a purely technical point of view, the market bottomed out three times yesterday, the first two times it was broken, and the third time it temporarily rebounded, but it does not look stable at present, even if there is still a chance to test the bottom again. Yesterday's bottoms were relatively "trap-like" bottoms, that is, they fell rapidly and then rebounded quickly, leaving a long shadow line, making investors mistakenly believe that there is a high probability of entering the market at the bottom to buy bottoms, but in the end they were repeatedly caught. Refresh a new bottom with heavy losses.
Since November 26, the currency circle has plummeted, and Bitcoin’s correction has exceeded 3,000 US dollars. The total liquidation amount has exceeded 1.2 billion US dollars, and the total liquidation number has exceeded 107,000.
The "leader" of the overall plunge in the currency circle is undoubtedly because of Bitcoin, and the main reason for the plunge of Bitcoin is the long holiday. Foreign investment institutions cannot buy coins in time to support the currency price. As a result, short sellers began to smash the market without any scruples.
The fact that foreign institutions stopped buying coins was indeed one of the important reasons for yesterday’s currency price, but it was not the whole factor. If the market had such a big correction just by stopping buying coins, then the market had turned upside down before the weekend. The largest correction range is roughly the limit energy of the current market bears, and this market correction has additional negative factors.
This negative factor is that there have been changes in the United States' encryption regulations, and the first victim is Coinbase, one of the largest exchanges in the world.
Recently, there have been rumors that the U.S. Department of the Treasury is about to implement a plan that will eventually aim to track the owners of cryptocurrency wallets and everyone involved in transactions.
The proposed regulation would require financial institutions like Coinbase to verify the owner of a cryptocurrency wallet and collect identity information before sending digital currency to it. In addition, these data will also log all the above information.
The policy doesn’t just affect people who store digital currencies on hardware devices like Trezor or Ledger. For other encryption services that use non-custodial wallets, decentralized finance (DeFi) smart contract software wallets, etc., they need to prove their identity under the rules and can only conduct transactions under supervision.
Just imagine, the most deeply rooted concept of cryptocurrency is decentralized trading, but this concept will be directly overturned under supervision, which undoubtedly goes against the original intention of some investors to participate in cryptocurrency transactions. Even if this regulation is inherently good, cryptocurrencies are an “extrajudicial place” involving money launderers.
This not only has a major impact on individual exchanges, but also a major blow to the U.S. encryption industry. In fact, the United States decided to take action on the encryption industry very early, such as the arrest of many Bitmex executives earlier this year, and the previous Binance was reported by Forbes to evade U.S. supervision, so that the current right to retire U.S. users, and now, Coinbase has also suffered from U.S. supervision.
On November 26, under the latest guidance from the US Commodity Futures Trading Commission (CFTC), Coinbase closed margin trading.
The time was just yesterday, and the bears also took advantage of the negative nature of the news to a certain extent. After all, once the margin trading is stopped, it means that many profit-making positions on Coinbase will be forced to close, bringing a certain amount of profit to the market. Throw the pressure plate.
However, things have not reached the worst point. The plan has not yet been officially implemented and has not been officially approved by the U.S. Treasury Department. It is just the time for the U.S. Treasury Department to change, and this Treasury Department is about to expire, so if you can If this period is delayed, things will turn around in the next stage.
There is also good news at present, Grayscale will work half a day tonight.
Earlier today, the boss of Grayscale sent a tweet that made people think, "OKay, it is time".
This message seems to be conveying the message "we are going to come back to buy coins tonight" to the market, which is also considered to be an important reason why the market has stopped falling today.
Barry Silbert is currently considered to be the man most feared by short sellers. Once Grayscale decides to buy coins or distribute buying information, most short sellers will stay away. This has already happened in the past month. It has been verified, so you can still look forward to the market performance tonight.
Going back to the market, the market did not completely fall below the mid-rail of the daily Boll line yesterday, and it successfully pulled back in late trading. Even though it fell to a position close to 16,000 US dollars at the lowest point, it still returned above 17,000 US dollars.
But today's situation doesn't look good. There was an upward rebound in the morning, and it is currently in a trend of rebounding and then continuing to fall. It is in the key Boll mid-rail position, if it breaks successfully, then $16,000 is also more dangerous.
ETH: The market once returned below $500 at its lowest level yesterday, but then it rebounded successfully. Su Zhe also suggested yesterday that you can consider hoarding some ETH below $500, including if you have the opportunity today, you can also consider operating it. If the position of ETH is suitable It still has the value of hoarding coins.
LTC: The current price has reached the 70-dollar cut-off point. Not surprisingly, it will continue to drop today. If the low point of yesterday can fall to around 60 dollars, you can still stock up a little.
BCH: It should be the currency with the worst decline among the major mainstream currencies in the past two days. Friends who hold BCH should pay attention to it. BCH rose the most in the previous period. If this strength is true, it should not fall So miserable, there are still abnormal factors.
BSV: Similar to BCH, the decline is also similar. It does not have the value of an independent market in the near future. Pay attention to the support of $150.
XRP: The highest drop should be close to 30% yesterday, but it rebounded later, and finally settled around 14%. I don’t know how many retail investors have recently gotten into the car, but I have expressed very clearly about this kind of currency, and the risk is extremely high .
EOS: It is back below $3. It is a weak variety of mainstream currencies. The recent strong pressure is $3.
Platform currency: It is currently falling with the mainstream. At present, it is recommended to pay attention to OKB. Once it falls below $5, you can consider saving a little more. HT is a weakened version of OKB. According to the current situation, the space for BNB is relatively small. .
The last thing I want to emphasize to everyone is to be in awe of the market, take orders with a good stop loss, and control risks well, otherwise you will lose a lot, and the old leeks know it.
