After sliding over $30 billion in the red market, the crypto market is yet again starting to turn green. Meanwhile as per crypto trader Eric Choe and crypto analyst Willy Woo we might go lower but Brian Kelly of BKCM says it will end soon. Meanwhile, Meltem Demirors of Coin Shares talks about the catalyst for positive price movement.
Crypto Market Starts seeing Green after the Dump, What to Expect Now?
The crypto market got hit and dragged into heavy red all of a sudden. In the process over $30 billion has been wiped out from the market. Bitcoin dropped down to $5,390 level and the altcoins moved down in tandem.
Though the total market cap is still down 0.85 in past 24-hours at $185 billion and daily trading volume of the entire market is at $19.8 billion, registering the 24-hours loss of close to 19 percent, the market is seeing greens as shown in the chart below.
(image source: Coin360°)
Popular crypto trader Eric Choe says we could go lower in the next few days,
If we can, I do believe it will be the start of a 5 wave structure towards 5.8K – 6.0K.
In any case, I will be keeping my eyes set on .382 as the main inflection point. pic.twitter.com/NYcoB9bHmv
— Eric Choe (Mr. Swing Trade) (@CryptoChoe) November 16, 2018
The technical measures also suggest pain ahead as pointed out by Bloomberg that Directional Movement Index (DMI) “is at its largest negative reading since 2016.”
Well, skeptics like Nouriel Roubini says, “I could gloat about Bitcoin collapsing 10% in a day to $5,700. But that is still some way to zero where Bitcoin belongs.”
Of course not zero but as agreed by crypto analyst, Willy Woo, more pains are indeed coming,
Murad’s long term analysis. Timing and price for a bottom I agree with 100% https://t.co/FtWBuPMHyT
— Willy Woo (@woonomic) November 16, 2018
In an interview with CNBC, Meltem Demirors, chief strategy officer at Coin Shares shares about cryptos getting crushed and being in a financial crisis. She also shared a related thread on Twitter,
“It’s been a wild 24 hours. crypto is a speculators game, and volatility is back, baby! as my biz partner @dannylmasters pointed out earlier this year – history rhymes – and nothing goes up in a straight line forever.”
December might be a good month for Crypto
She points out that a sell-off occurred combined with institutions taking the money off the table while people are trying to pull risk off the table as well. However, in the coming months, a catalyst in the form of Bakkt launching in December can trigger Bitcoin prices the same as last year’s future trading in November did.
Moreover, Fidelity is coming in January and that’s when people will see the institutional money materialize, says Demirors. She further compares it with Dotcom bubble, saying, “Tech that changes industries and markets doesn’t get built overnight. there are fits, starts, and failures.”
She says the majority of the crypto assets are “very thinly traded” and “I think all other assets that are not bitcoin are in the midst of a liquidity crisis. What we’re seeing across the board is asset prices are down 75 percent or more, in some cases 95 percent.”
According to her, at this point projects are running out of money and this will lead to, “They’re going to need to start firing employees. They’re going to need to cut costs. She. You’re going to see consolidation, and some of these assets, inevitably, will get marked to zero.”
Meanwhile, “I think it’s probably an opportunity,” says Brian Kelly, BKCM founder, and CEO, while sharing that the low volatility heightened this movement while Bitcoin Cash hard fork played the role of the trigger. However, according to him, this will be over once fork event passes away.
The prices might be taking a hit and with more pain expected to follow but the bitcoin trading volume is rising in a number of countries, especially those that are having economic issues or crisis. Moreover, millennials are going crypto as a consumer report by investment bank and asset management firm Piper Jaffray shares teenagers want cryptocurrencies instead of cash, and gifts. Additionally, Bitcoin and crypto adoption is also gradually increasing along with crypto ATMs that are making their way into market worldwide.