Market overview: June 18–24
Last week main cryptocurrencies including Bitcoin hit the new minimums, and that was the week’s main outcome. As recently as last Monday, trading was at the $6700–6800 range, and this Sunday the Bitcoin price went below the $5800 mark point. On Monday morning, trading demonstrates average volumes and Bitcoin is trying to hit the $6200 markpoint, but this time from below.
On June 20 the world learnt that South Korean cryptoexchange Bithumb had been hacked for $30 million. The market’s reaction to this information was rather moderate though. Main cryptocurrencies lost 2–3% in value and regained their positions rather fast. Bithumb, in its turn, announced that it was going to reimburse customers from its own fund which must have been formed at the end of 2017 when trading volumes were at record levels. Many qualified such mild reaction to the news on hacker attack as an indicator of bullish sentiments on the market. The reason for Bitcoin’s fall, when it lost almost $1000 in three days, is rather psychological. Counting on hitting the $6800 level and further growth, investors suddenly realized that their expectations were not coming true. At the same time, the majority of market players believed that the price was very likely to drop below the $6000 level that had been holding the fort for 3 months already. Further decrease scares everyone as it’s almost impossible to measure its depth and the price recovery process can take really long. The most obvious and closest support level is the $5400 markpoint, exactly where the growth wave of November 2017 started.
At the present moment, there are no fundamental reasons to drop below $5000 level. There might be major market players who possess some information that is hidden from the public and mass media. The market needs a persistent positive agenda and media background to renew its growth. Bitcoin net power continues to grow and hashrate is demonstrating new maximums. It’s most likely that Mt.Gox’s trustee will stop sales as the Japanese court approved the petition of cryptoexchange and is closing the bankruptcy case.
We still assume that with no considerable rebound over $6800, current situation can lead to panic sales and further recurrent drop down to $6000 and $5400 markpoints. Altcoins follow the main cryptocurrency, so it’s no use hoping to find ‘a quiet harbor’ at the moment. Even a safety asset Binance Coin (BNB) went through severe correction last week. TRON (TRX) doesn’t feel better than the market as well, although TRON Foundation announced that it would burn 1 billion TRX from its funds to celebrate its own net launch on June 25.
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