Bitcoin – trend change?Mar 11, 2019
No significant changes have happened in the cryptocurrency market. There are still 12 coins that have a capitalization of more than $1 billion, while the capitalization of the first one is significantly higher than the other eleven of the TOP-12.
Binance Coin (BNB), Stellar XLM and Litecoin (LTC) became the growth leaders for the week, adding 28.5%, 19.5%, and 19%, respectively. At the same time, only Tether (USDT) is held at the zero level for the first seven days.
Monero (XMR) shows moderate growth, but still remains out of the “big league of billionaires.”
Indicators for the trend change
The fact of the presence and, accordingly, a change in trend is the area of technical analysis. But the change of trends occurs only due to a change in the fundamental factors.
Analyzing the price chart of BTC / USD on large timeframes D1 and W1, we can observe that the trend has not changed yet. The price is being held under the strong technical resistance range of $4350– $4500. Therefore, until the moment of the breakthrough of the marked resistance range, it is impossible to say that the trend is already broken. However, now we see the first signs of weakening sellers, which indicates a weakening of the downward trend. Based on this logic, many experts, traders and crypto enthusiasts talked about trend changing. The more often they talk about this, the higher the likelihood that the trend will change to ascending.
In this case, it is important to take into account the interest in the market in general, which is currently extremely low, given the dynamics of Google Trends search queries.
Successful Monero hard fork
The planned hard fork of Monero (XMR), the thirteenth cryptocurrency by capitalization, was successfully completed. It is worth noting that XMR cryptocurrency allows its users to remain anonymous. The update took place at block #1788000 and was primarily aimed at further counteracting miners using ASIC equipment. A number of other updates have also been activated to increase privacy and overall network security. After the new hard fork, the Monero network hash rate dropped significantly. So, according to 2miners, by the morning of Monday, it was about 96 Mh/s, although on Saturday this indicator was at the level of 1.32 Gh/s.
Monopoly in the cryptocurrency market
There is no need to discuss the pros and cons of monopoly in the cryptocurrency market. The fact is more than 80% of all Ethereum coins are stored at 7542 addresses, each of them contains more than 1000 ETH.
According to Digital Delphi, 6,490 addresses hold between 1,000 and 10,000 ETH, 923 of them hold between 10,000 and 100,000 ETH, 155 between 100,000 and 1,000,000 ETH and only four between 1,000,000 and 10,000,000 ETH.
Binance is expanding
Changpeng Zhao, the CEO of Binance, hinted at the creation of a new type of Fiat-crypto exchange in Argentina in his tweet on March 9. The authorities of Argentina intend to invest in blockchain startups at an early stage of development if they are supported by the venture capital division of Binance Labs. Thus, the Ministry of Labor promised to allocate $50 thousand for each project.
According to The Block, Binance plans to launch crypto-fiat exchanges in South Korea, Russia, Turkey, Liechtenstein, Singapore, and Malta. However, the representative of the exchange confirmed plans only for Singapore and Malta.
This indicates to the rapid development of infrastructure, which is a positive fundamental factor for the market in general. Consequently, further infrastructure development will simplify the process of using cryptocurrencies, as well as increase reliability. As a result, there will be objective fundamental facts that enhance interest in this market and lead to a trend change to an upward one.