Market overview: 7–13 May
Last week was the week of correction for Bitcoin and cryptocurrency market in general. The attempt to hit a $10000 mark point at the beginning of May failed. Anticipating retracement, many market players prefered to reduce positions. It led to a significant increase in sales, and even the level of $9000 managed to keep higher prices only for one day. On Sunday, May 13, the market is demonstrating some signs of a turnaround. If customers and those who are restoring their positions stay positive on Monday, we can expect that prices start growing faster. Thus, if we assume that temporary reduction is over, Bitcoin correction was equal to 50% of the upward movement that started on April 9–10.
Cryptocurrency market total cap reached the mark point of over 400 billion again. It’s a good sign and it proves that investors are interested in a wide range of cryptoassets. Bitcoin dominance index got stable in May, as the latter is more resistant to decrease, as a rule.
It’s hard to point out certain leaders or outsiders among altcoins. The most liquid ones are still Bitcoin Cash and EOS (they are doing a bit better than the market in general). NEO is demonstrating some weakness, possibly explained by the release and development of many competitive platforms (Wanchain, POA, Network, aelf). There is still some pressure on anonymous cryptocurrencies; Monero, Zcash, and Dash are more eager to go through correction together with the market, but are not so likely to react to positive changes. Possible delisting of these assets from exchange could worsen the situation,
The media background was moderately negative last week. It’s worth pointing out two events: South Korea’s exchange Upbit suspected of fraud; Mt Gox trustees moved funds from their wallets again. The majority of market players think that these events are the reason for the recent decrease.
The world’s biggest blockchain and cryptocurrency market conference Consensus 2018 is taking place in New York next week, May 14–16. Traditionally, for the last three years, this event was always followed by buoyancy and positive dynamics. Of course, it’s not for sure that this trend continues, but the psychological state of ‘being ready to grow’ could motivate many people to start buying. In terms of technical analysis, if the Bitcoin price consolidates over the $9000 level, it would be a good sign to prove the ongoing upward trend.
