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01/15
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Bearish sentiment: analysis of the situation Bearish sentiment: analysis of the situation

Cryptocurrencies are in bearish sentiment, and this makes the community worry. How long will it last, and where to invest when Bitcoin is dropping?

Chinese analysts say that soon all the crypto users will ask these questions. After all, the Bitcoin price won’t significantly increase in 2019.

Local experts, basing on the failure 2018 in every respect, are very cautious in their statements, but unanimous — the bearish sentiment will continue throughout the 12 months of the upcoming year.
It is unlikely that a rally will take place, given that the pressure on the crypto sphere is constantly increasing. Most likely, the “winter” of Bitcoin will last one more year.

Speaking of the reasons for this situation in the market, one of the analysts underlined that the matter is in explosive growth against the background of the general instability of the market. Cryptocurrencies have got more expensive thousands of times, and no one was prepared for this.

Xiao Lei:

“The price of bitcoin rose more than 20 times in 2017. That increase is definitely unsustainable.”

Huang Liang:

“The reason for the growth of BTC price is the entry of many new players into the market. Trading platforms could not withstand the influx. Hundreds of thousands of new users were registered daily.”

Sun Hang:

“The problem of the crypto market is an imbalance between supply and demand. Until it isn’t solved, the Bitcoin price will not increase significantly.”

About Bitcoin and Altcoins: Analysis 2018 with Examples

At the moment of writing this article, the capitalization of the first cryptocurrency was 51.8% of the total market cap (CoinMarketCap). Therefore, a decrease in the Bitcoin price is reflected in all the other coins.

No matter how cool the technology is and what the benefits of the projects are. The price drop was due to the general bearish sentiment. A good example is Ethereum.

If Bitcoin sank from $20 to $4 thousand and became 5 times cheaper, ETH lost much more in price over the past year. In January 2018, the price of the coin was $1,389. Today it’s $149. The difference is almost tenfold.

If such sturdier ones as ETH, which has been operating since 2015, felt so bad in 2018, then what about the rest of the coins, whose ICO and starts took place at the time of active regulation and pressure? Their fate is really unenviable.

The ATB Coin project had an experienced team, a lot of advantages and a successful start in late 2017. It was called a technological breakthrough, but it had a tough time in 2018.

Market volatility and fluctuations of the Bitcoin value, imperfect legislation and exorbitant taxes did their job – many traders who had mastered the new opportunities suspended active trading. Crypto winter has come.

What is the cause of failures?

The most annoying thing is that the main reason for the market downfall is the disapproval of Bitcoin’s investment potential. The launch of Bitcoin ETF, which had been so anticipated in 2018, did not happen. SEC didn’t give permission, postponing consideration of applications for the first quarter of this year.

We all remember how the market reacted to the launch of futures in the middle of December 2017 – the price of the crypto increased sharply, reaching its maximum. The launch of the ETF should have attracted institutional investors with their huge assets and opportunities.

That didn’t happen. Instead of another victorious and well-justified growth of the cryptocurrency price, it fell several times, punching the lower ceiling and updating the annual minimums.

What to do?

The obvious answer is to wait. Analysts say that the situation won’t change a lot by March. And only from the second quarter of 2019 a “warming” of crypto climate is possible.

It’s better to trade cryptocurrencies on the proven exchanges, choosing coins with minimum volatility. Many are getting ahead using cheap altcoins. By skillful manipulation of rates, one can earn without losses!