Let's talk about liquidity and volatility.
People are asking, well, we haven't reallymoved over the past 10 days or we were in a very narrow price range.
Is this a good sign? Well, the matter of the fact is that we justtraded in a very high liquidity price level.
The technical terms forthat is "liquidity pools".
It is working like a magnet for the pricewhen you trade on such a level.
The derivatives market options and futuresis helping the Bitcoin price to be more stable.
For larger accounts who need to do biggertrades – it helps them to facilitate the risk better without having too muchof a price impact.
Now also people are looking for a breakout,because we have traded now sideways for quite a few days and weeks even.
But we don't really seea breakout to the upside.
We have seen this massive rejection at $4,200which is clearly showing that the market is not ready yet for higher levels.
We also think that we're going to dive intoour accumulation zone which is between $3,100 and $3,600.
First sort of support we reckon comes in ataround $3,400 which is also a liquidity pool level.
Then looking a little bit on the short termsides, people are looking for or seeing these drips lower in BTC dollar which we have seenover the past few days.
This is basically nothing special.
It is just the week long hands getting washedout who bought on the way up to $4,200.
These guys sort of need to reduce their riskand get out of their longs.
We have seen very small attempts to breakhigher and we saw rejection at $3,900.
All in all, this doesn't help news like Samsungcoming in with included wallet, crypto wallet in their phone or the Facebook stablecoinwhich could also announced last week.
In general, in a bear market good news orsupportive news getting disregarded and bad news are getting an overweight.
In general, we think those news are not havinga price impact to BTC or crypto assets parse, but it's definitely a step into the rightdirection for mass adoption.
What's more important than actual short termprice movement is the volumes that we're seeing across crypto exchangesand even on the Bitcoin blockchain.
The Bitcoin blockchain hit a new high thismorning of 4.
05 transactions per second.
You can see it's been rising throughout thebear market.
And then on volumes we can see that we'retracking right now around 25 billion dollars per day across crypto exchanges.
It shows that the crypto industry is growing,that there are more people trading crypto out there.
To think that this market only ever surpassed1 billion dollars per day, in April of 2017, so we've come a long long way since then.
Let's try not to get confusedabout that short dip.
It could easily be reversed.
It could go down further, we're not sure butwe want to try to have a long term outlook on this market rather than just focusing onwhat happened today.
We've been seeing institutional players likeFidelity and Nasdaq getting into the crypto market and yet it hasn't really had very mucheffect on the prices and the reason for this is that the fundamental updates or the newsdon’t have as much impact as the technical analysis and the charts where we can see atrend in the market that overtakes the fundamental analysis.
At the end of the day, bottom line pricesmove based on orders, if you have more buy orders than sell orders, the price goes upand vice versa.
So just because we have some sort of a newsevent doesn't necessarily translate into people buying the crypto itself.
What's firmly driving the markets is the technicalanalysis and the trend.
So right now as we said we're at the tailend of that bear market.
And once we see indicators pointing to higherprices, let's say a breakout above that $5,000 per coin level, that's the kind of thing thatgets people's attention.
That's the kind of thing that causes fomoand then people buy back into the market.
But until then we're kind of on a low burner.
If you are trading crypto and want to do itmore efficiently, here are some tips for you from our partner, Trade Santa.
Today we will share the first tip.
Diversify the crypto exchanges.
Everyone knows you should diversify your portfolio– it both minimizes your risks as well as gives you more opportunities.
The same applies to theexchanges you trade on.
First, it allows you to trade more pairs.
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It saves a lot of time, as you do everythingin one place.