Previous week, some of the cryptotraders stated that retaining momentum over the 3,500 USD area is essential for prevention of a decline to a low 3,000 USD level and probably even to as low as 2,000 USD.
Per Murad Mahmudov, a digital currency analyst, the usage of a keyword “Bitcoin” has significantly dropped over the past 14 months on Twitter, which to this day remains the most popular social network amongst digital currency researchers, developers and businesspersons with ties to the industry of digital currency. The said decrease showcases a deficiency of interest in the sector, even from its seasoned actors and participants.
According to Mahmudov, such dynamics scream “bearish”, signifying an imminent collapse for the prices in the mid-term. As for the near-term period, with financiers of the cryptosector finding out that the bearish sentiment will stay in the market longer than anticipated, more and more holders might start selling their assets.
Even at the current stage, the bearish market is the longest to date in the digital currency sector’s industry. When the ecosystem cleanses itself from the speculators, only then can the talks of proper bottom have grounds.
As Makhmudov explains, the market needs to experience a total price and attention exhaustion from all of those who are not the true believers. Most of people will trade when they find out that this “crypto winter” will continue a lot longer than they expected.
Despite the fact that some cryptotraders anticipate BTC value to recover over the 4,000 USD resistance area in the upcoming days, overall, the bias stays rather pessimistic.
Putting things into perspective, Makhmudov stated that financiers would receive their rewards for building and learning in the dark times, as did the financiers after the Dot Com bubble era.
Nevertheless, in the upcoming future, the cryptocurrency analyst pointed that financiers need to admit the general weak position in Bitcoin and treat it as a high-risk asset.
There are hopes of institutional financiers entering the cryptomarket by the second half of the year, with the solidified infrastructure of the asset in place.