Where will cryptocurrencies go after “Waterloo”?

Over the past three days, cryptocurrencies have reappeared in the roller coaster market. On Saturday night (December 4) East, Bitcoin fell more than 20% in less than 24 hours, hitting its lowest level since September at $ 42,000 and at least 400,000 unemployed. However, cryptocurrencies caused declines as a wave of buyers emerged during the recession.

Commenting on the crash of major cryptocurrencies, UBS expert Moritz Diller wrote that a cryptocurrency shortage emerged when testing the Omi Keron update two weeks ago. Time for Cryptocurrency Demands and Strict Securities Regulatory Interference These vaccines have been exacerbated as the market has experienced lower risks (unless associated with inflation).

However, the decision to seek a discount soon began to buy most bitcoin and ether retailers in the hope that in the future retailers could sacrifice more tokens and block them again in some countries due to the contagion. more daringly.

According to analysis of data from UBS's Glasnode chain, retail traders and whales buy from the bottom, while the average trader sells short. This could lay the groundwork for the next short run race.

UBS also pointed out that Bitcoin's realized price wings strengthened to reach resistance from 55,000 to 65,000. "Realized price" refers to the value of the token "the market value" is divided by the current supply. , and "actual market value" is the market value calculated by adding the market value as the tokens move. At the end of the chain.

Miller Tabak expert Matt Marley believes Bitcoin's drop is due to investors.

Ben McMillan, CIO of IDX Digital Assets, said $ 50,000 would be the psychiatric level of the problem.

Armando Aguilar, vice president of digital assets at Fundstrat Global Advisors, stressed that investors should pay close attention to resistance levels between $ 52,000 and $ 53,000. Average rating of US $ 40,000.

Ether once returned near each high point after a drop, but has since fallen to the lowest. UBS explains why bears prevented Ethereum from destroying its all-time high of $ 5,000. The bank notes that Ether Options, which expires in March 2022, is run by 15,000 options worth around $ 400 million.

"These events indicate that Ethereum's acceleration may increase at any time and cause a gamma flash. Confidence in the economy was not confirmed until the end of the year."

Financial blogger Zero Hedging points out that for some this means that the market can see Ether reaching around $ 5,000, and it wasn't until short selling finally allowed him to buy Ether that he is expected to rise to $ 15,000. But for now, I think it's still a long way off.