Crypto market prospects for the second half of 2018- bitcoin ready for the next rally
The first half of 2018 turned out to be a hard time for the crypto currency market, but despite serious problems that industry faced, the market successfully got through the crisis. In the first six months of 2018, the news background was extremely negative — for example, circulated reports about scandals around the largest crypto exchanges, exchange’s clients accounts hacks, ICO ads ban by Google and Facebook, crypto regulation uncertainty in leading jurisdictions and so on. However, in recent months positive trends and some improvement have emerged which allows us to say that the worst for the market is left behind. We see interest of large American hedge funds in the crypto markets investments, the gradual return of interest in ICO projects. In August, for the first time since January 2018, a steady growth of market capitalization has been detected, a positive news background is being formed, and finally medium-term technical picture on the market has improved with the prospect of growth in the coming months.
After a large-scale decline in capitalization, a sort of a volume vacuum has appeared — since January 2018, the volume of capitalization declined by more than three times (2018 January 700 billion -2018 August 200 billion). With all the dramatic nature of this decline, we are convinced that this decline is a positive process for the future of the market. The market left behind the period of rush demand, prices returned to balanced and fundamental levels-all these signs characterize the market transition to the stage of maturity. Volatility decreases, the market becomes more predictable and stable, and this opens up opportunities for long-term investments.
It is interesting enough that at the end of the summer of 2018, the crypto industry is facing the same questions as at the beginning of this year. These are, above all, security and regulatory issues. FORTFC analysts believe that the next stage in the development of the crypto industry will be associated with the arrival of large institutional money. In what form it will happen — the time will tell. But, this will lead to the formation of a stable, but not a speculative upward trend. Therefore, factors of regulation and security are of great importance for investors. Investors need to monitor the news flow in this regard. Over the past months, the crypto currency market positively meets any news about progress in the sphere of regulation. The last bitcoin gains in July 2018, when the local high was reached in the area of $ 8,490, was due to information that American regulator (SEC) had intention to approve for the hedge funds the opportunity to work with crypto currencies.
Another interesting fact for the crypto market, which became apparent this summer, is the direct correlation between bitcoin and US dollar. Earlier, USD growth brought some pressure for bitcoin, but this summer the situation has changed. US dollar global growth in July-August 2018 provided the weakness of currencies in developing economies (Brazil, Turkey, Russia), and this stimulated demand for bitcoin amid declining gold market.
The medium-term, technical picture in the crypto currency market in August 2018 is a sort of volatile intraday trading in wide consolidation. We still note the lack of market volume for a certain medium-term upward momentum. Bitcoin is traded closely to yearly lows, this is the $ 6000- $ 6800 areas. This is a very interesting market zone and we want to discuss it in details.
Firstly, this mark divides two stages of the crypto market history. It was the moment when bitcoin first moved above $ 6000 in October 2017 when the global era of crypto market started. After bitcoin rally in the last month of 2017, the market was recognized all over the world; -bitcoin experienced a boom gaining up to $20,000.
Secondly, level $ 6000 is a kind of bottom for the entire crypto currency market, given the multi-billion crypto mining industry. According to FORTFC experts, the break-even point for bitcoin mining is an average $ 6000 per coin. That is why all last three Bitcoin rally originated right from this zone.
We can assume that the next market recovery, that will take place until the end of 2018, will not be an exception and will start from this area. The current zone is interesting for medium-term longs, as investors closely follow the $ 6800- $ 6900. Each time market starts the rally by breaking up through this zone. The next significant mark for the bitcoin market is located at $ 7600. The total volume of capitalization is the second important factor to watch. Stable growth of capitalization is an important factor in the formation of a stable upward trend.
FortFC is a subsidiary of well-known FFS holding company, created to operate in the field of crypto currencies. The main FORTFC mission is to provide high-quality services for professional participants of the crypto industry (brokers, exchangers, crypto currency funds, ICO start-ups), to create a flow of deep market crypto liquidity forming reliable and quick access to crypto markets.
The last bitcoin rally revealed on the market certain problems with current crypto liquidity conditions, as some exchanges failed to provide the access for crypto markets — it took weeks to open account on a well-known exchanges. There were interruptions with crypto market data flow, crypto exchange websites (where clients were forced to make transactions on the market) did not withstand the hype, quotes of one market could differ significantly depending on the exchange, as each crypto exchange provides its own data.
FORTFC solves all these problems inherent for the initial stage of the industry, thanks to many years of experience in the financial and IT industry, as well as a team of enthusiasts and professionals. FORTFC services are also available to investors and traders. FORTFC clients can trade with the most favorable market conditions choosing the best market data for any crypto currency, saving money on the spread and exchange trade commissions.
