The Bottom Of The Crypto Market Has Passed

General info

Cryptocurrency is the result of computer calculations; electronic registries that store information about how much cryptocurrency a user has and where they transfer it to. It is stored in special electronic wallets.

The records in all the ledgers are true and the same. Neither the banks, nor the government, nor the creator can tamper with these records. There is no single controller in the blockchain; the system is controlled by many participants. A mathematically based system protects the digital currency from being tampered with or hacked.

Today, cryptocurrencies are gradually becoming a serious competitor to the traditional financial system. Conventional modern money issued by central banks is not backed by any precious metals. The Internet is full of individuals and companies who promote their experience and some strategies through instagram. This sometimes is possible if they buy instagram followers.

10 signals:

1. The big funds have gone bust +

One of the largest VCs, Three Arrows Capital, with >$10bn under management, filed for bankruptcy. Luna Foundation can be added to this as well.

2. Maximum boredom (more or less) +

There is boredom in the market: low volatility, falling volumes on DEX, NFT and CEX. Few infos.

3. Therefore,the 200-week SMA on the market capitalisation chart ?

TOTAL value went below the 200 SMA but there was no weekly candle close/open below that value. Therefore, it is still in question.

4. Loss of retail interest +

Retail investors are gradually withdrawing. This is evident in the decline in volumes, unique users in DeFi, NFT and centralised exchanges.

5. Social media has become quieter +

There has been noticeably less activity on crypto Twitter (CT). Interest in bitcoin and crypto has dropped, according to google trends.

6. FRB stops aggressive rate hikes -

While the FRB has chosen to beat inflation — the macro economy is gradually moving into recession. Business activity is declining and companies are focused on survival rather than scaling up. Crypto included.

7. Monthly RSI oversold for months on end ?

The RSI indicator on the weekly chart of the crypto market capitalisation has been in oversold territory for just a month. But on the daily chart, the rebound has already gone too fast.

8. SP500 fall to coronadump level ($2200-$2300) -

The SP500 started rising sharply after the Coronacrisis on the back of the launch of the Fed's printing press. It would make sense to make a 55% correction in the SP500 from the haves, just in time for the March 12, 2020, level. Especially the last real estate crisis caused the index to fall by 55% as well.

9. “No longer working in cryptocurrency” +

Large firms have laid off a significant proportion of their staff:

— Huobi — 30% of employees

— Coinbase — 1,100 employees

— Crypto com — 250 employees

— Bitpanda — 300 employees

10. Despair and depression +

Based on our survey above only 22% hope for a quick turnaround in the market. Many have lost on the LUNA & UST dump, or on longs. The crypto market has lost $2 trillion since the haves.

Conclusions.

Of the 10 signs of a bottom, 4 have yet to be fully confirmed. Technical signals (200 SMA and RSI) have been half confirmed, but they are not key.

The main factors are macroeconomic. Bitcoin has never yet experienced a major SP500 drop of 50% combined with inflation. There are big prerequisites for the index to fall, so we shall see.

You can find more information from Chelsea Roh who is a freelance writer. Her current focus is blockchain technology and cryptocurrency. One could even call her a blockchain “enthusiast.” In addition to content writing, she is an experienced SEO and Social Media Strategist. Before moving to Canada, she spent 10+ years marketing and working hands-on in the medical practice industry within the U.S.A. Her content engages her audience so much that she has become popular and does not buy instagram followers.