September 26, 2021

The cryptocurrency market expects new drivers to break out of the current equilibrium

The cryptocurrency market expects new drivers to break out of the current equilibrium

The cryptocurrency market cannot yet determine its direction and needs new drivers to get out of the current equilibrium.

The passing away of an industry iconic figure,John McAfee, who presumably committed suicide in order not to be in the arms of the American Themis, will serve as a pretext for continuing to re-evaluate the existing disposition. After an unsuccessful attempt to gain a foothold below $ 30,000, there was a wave of liquidation of short positions and purchases from figures of the caliber of Ark Invest by Katie Wood, Anthony Pompliano and Michael Zonenstein to continue growth hinted at by technical analysis. At least some kind of replenishment from positive news is required, but it is not yet available, which led to the suspension of the rise and the transition to the range.

Bitcoin had to test again on Wednesdaypressure, this time from the Bank for International Settlements. The current situation was the best fit for the presentation of the report on national digital currencies. They don't need competition from projects like Facebook's Libra (Diem) or BTC. Central banks have decided that the future belongs to CBDC, while cryptocurrencies are “a speculative asset, not money,” adding all those mantras about financial crimes that have already been pronounced many times.

The "old guard" also got involved: Professor Nasim Taleb and bubble specialist Jeremy Grantham. But the market took it calmly that it was impossible not to include it in the asset.

The focus is still on the Chinese direction.The head of Foundry USA promised that the migration of miners will not happen overnight and may be burdensome, so new sales of accumulated coins cannot be ruled out. But not now, at the moment the market is oversold and the companies seem to be waiting for more favorable conditions.

An external background can also help.The Fed is signaling the start of a discussion on the normalization of monetary policy, but they are trying to calm the market and they succeeded (at least until the next report on the labor market on July 2). Therefore, if the selling pressure does not return, new waves of closing short positions will follow by the end of the week, the magic of technical analysis will manifest itself.

Long stay is celebrated at Santimentthe crypto market sentiment index in the FUD area, which, as a rule, leads to a rebound. The scenario of recovery by July to $ 37,000 and more remains the main one. Altcoins are not in favor. Bitcoin dominance index has strengthened.