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The accumulation phase. BTC is ready for a strong movement.

Jul 29, 2019

All 14 cryptocurrencies with a capitalization of more than $1 billion ended up with moderate losses last week. Outsiders were TRON (TRX) – 25%, Bitcoin SV (BSV) -13%, Binance Coin (BNB) – 10% and Bitcoin (BTC) -10%.

There are several reasons for the unexpectedly robust decrease of TRX, which occurred at the beginning of last week. Of course, the main bearish fundamental factor was the fact that the CEO of the TRON project, Justin Sun, postponed the charity lunch with Warren Buffett for an indefinite period.

“Thank you for your support, I was suddenly hospitalized because of kidney stones, and I cancelled lunch with Mr Buffett. At the moment, my condition is stable, and I am recovering. I apologize to everyone, ” wrote Sun on Weibo.

Additional pressure on TRX was exerted by information about the involvement of the TRON project in money laundering. The 21st Century Business Herald reported that the altcoin development team is engaged in the legalization of income derived from gambling and the distribution of pornography in China.

The media emphasizes that the team leader Justin Sun allegedly not only knew about dubious transactions but even approved them. Justin Sun denies all accusations. Earlier, he said that his company, Tron Foundation, is registered in Singapore and meets all the requirements of local legislation relating to the fight against money laundering.

Opinions

Josh Rager, the well-known cryptanalyst and co-founder of Blockroots, published several tweets which indicate the risk of a short-term weakening of BTC. However, he believes that reducing the price of the leading cryptocurrency under the psychological level of $10000 should be considered as a gift.

Josh does not believe in the change of long-term sentiment to bearish, although he does not exclude the return of BTC to the level of $9000. However, an increase to $10854 will indicate the advantage of buyers and, as a result, the readiness of the price to resume the upward movement in the long term.

Analysts of San Francisco Open Exchange (SFOX)  have suggested that Ethereum does not deserve altcoin classification.

They made this decision after researching the latest changes in the cryptocurrency market. We recall that the volatility of trades in the past few months has increased quite strongly. The change in attitudes was due to several tweets of Donald Trump. He criticizes Bitcoin and the rest of the altcoins and also expresses his distrust of Libra.

In the report on cryptocurrency volatility, SFOX notes a significantly increased correlation between ETH and BTC, while the correlation between BTC and the rest of altcoins decreases.

The high level of correlation between ETH and BTC, according to SFOX analysts, indicates investor confidence in ETH.

 “This may support the idea that Ethereum is coming into its own as a blockchain that is publicly recognized as an asset on its own terms, much like Bitcoin. If this trend continues, it may become inappropriate to categorize Ethereum as an “altcoin” on a par with other cryptoassets that are not Bitcoin.”

The launch of Bakkt

The launch date of Bakkt trading platform was postponed several times. But there is information from The Blok, according to which, a full launch is scheduled for the III quarter of this year.

Bakkt admits the risks associated with low liquidity, which is planned to increase after the launch of the platform. Ricky Li, the co-founder of Altonomy trading company, noted that the volume of open positions on the Bakkt platform could reach $400 million, while the guarantee fund is unlikely to exceed $35 million. However, it is extremely difficult to call this point critical for the platform.

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