Life After The Bitfinex And Tether Fiasco: What’s Next For Crypto?

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Post Bitfinex-Tether Fiasco whats next for crypto

As The Digital Dust Settles, Where Will Crypto Markets Go Next?

As the digital dust starts to settle from the Bitfinex and Tether mess experts are trying to assess where Bitcoin prices might be heading next. Many have actually viewed the current string of events as bear-like and the immediate response of crypto markets on Friday combined with the media FUD storm appear to have actually validated it.

After striking a new 2019 high up on Wednesday of $5,650 there was a lot to be enthusiastic about, with a push past the 50-week moving average and on to $6,000. By the end of the week, however, Bitcoin had actually dropped to $5,180 losing around 8 percent. BTC has actually recovered partially however and held above $5,250 for the past 24 hours.

At the moment, the price is testing the 50% Fib retracement level of the last drop from the $5,510 swing high to $4,910 swing low. However, the $5,220 area and the 100 simple moving average (4-hours) are acting as hurdles. Above $5,220, there is a major resistance near $5,280 and a connecting bearish trend line. The 61.8% Fib retracement level of the last drop from the $5,510 swing high to $4,910 swing low is also near the $5,280 level. A successful close above the $5,280 level might trigger a decent recovery in the near term.

Bitcoin Back Down To $4500?

A return to the monthly support zone of around $4,500 has been predicted by a number of crypto traders and analysts.

BTC recovery

Others have observed similarities with the current market structure and that of December last year. Full time crypto trader ‘Financial Survivalism’ sees more consolidation ahead for Bitcoin, even if it does fall back once again.

“This tells me that could be in for another prolonged period of consolidation. If it happens between $4,200 – $5,800 then be weary of the golden cross. Price needs to support above the EMA’s or else a false signal is likely. If we support > $4.7K then golden cross is likely valid.”

Bitcoin has maintained the majority of its current gains which is a strong indication for more consolidation instead of another huge dump. Short-term movements and reaction to news is simply the outcome of day traders making rash decisions. The long term image for Bitcoin is still extremely positive though there will constantly be a couple of bumps in the roadway occasionally.

But What About Ethereum?

After Bitfinex Tether Fiasco Whats next for CryptoA similar situation has actually played out for Ethereum which dumped harder and faster than Bitcoin as the week ended. From a seven day high of $176 ETH slid over 13 percent all the way back to just above $150. At the minute Ethereum is trading at around $155 which is its lowest level considering that the beginning of April prior to the huge rally began.

Analysts have noted crucial support at $143 where a roll over could cause a significant dump back to $115. $200 Ethereum is beginning to look a long way off once again as it hasn’t been at this level considering that mid-November.

Generally speaking, Crypto markets are still trading within their range bound channel above $170 billion. The recent dip was not as severe as anticipated and the majority of gains from the early April rally have been kept. Further losses nevertheless could see market capitalization topple back to $140 billion quite rapidly. More consolidation appears to be the most likely outcome for crypto markets over the next few weeks. Daily volume is still high, nearly $50 billion, and the fallout from the recent news appears to have been limited.

Image from Shutterstock

 

The post As The Digital Dust Settles, Where Will Crypto Markets Go Next? appeared first on NewsBTC.

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