Market overview: April 2–8
At the beginning of the previous week Bitcoin tried to break the resistance level of $7500, but “bulls” evidently lacked enthusiasm. A considerable part of investors is concerned about the further drop in prices, that’s why values above $7000 were perceived as another chance to leave the falling asset. Thus, most of the week the market felt sellers’ pressure; the situation had changed only by the weekend: on Sunday evening Bitcoin price almost reached the markpoint of $7000 again.
In terms of media background, the week was marked by two important events: US Security and Exchange Commission (SEC) still considers Bitcoin exchange-traded funds (ETFs) to be listed on New York Stock Exchange (NYSE).
Tokyo cryptocurrency exchange Coincheck accepted the online broker Monex takeover bid. Thus, that’s going to be the second major cryptocurrency exchange acquisition after Poloniex performed by conventional financial organizations.
AtAs for Ethereum, despite network plans to switch to the POW+POS algorithm in 2018, Bitmain, a major producer of mining equipment, is going to offer the market ASIC devices for ETH mining. This means that long-term functioning and mining perspectives in the Ethereum network are regarded as a profitable activity. The increasing difficulty in mining accompanied by the diminishing reward for a block can be compensated by a considerable rise in asset price.
Traditionally, the position of leading regulators is considered to be one of the main risks for the cryptocurrency market. At the same time, cryptomarket giants are also looking for the problems solutions: Coinbase addressed SEC to get the broker license. If Coinbase gets this license, cryptocurrency exchange would be able to list even those cryptocurrencies that are regarded as securities by the American regulator. There is also some evidence that Venrock, a venture department of the Rockefeller fund, signed the agreement with the Brooklyn cryptocurrency investment fund Coinfund. Thus, cryptoindustry and financial stakeholders keep being very active.
The second quarter has started. Statistically, it’s a good time for Bitcoin and the market in general. But it’s important to keep in mind that investors who entered the market in 2014–2016 got their profit margin. Even the Bitcoin price of $3000–5000 seems attractive to these market players for profit taking.
Two main cryptomarket assets have now two new stable price ranges: $6500-$7500 for Bitcoin and $360-$420 for Ethereum. We’re expecting to leave this range next week and the direction of this shift will give another strong kick for market development.
