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Since 2011, mainstream media, bank managers, economists and other skeptics have happily announced the disappearance of Bitcoin after each major correction of its absolute record.
Bitcoin will continue to challenge its critics
In the past ten years, Bitcoin has undergone five 85% corrections, including the recent 14-month bear market. However, the dominant cryptocurrency managed to survive each correction, reaching a new record after every major fall and defying criticism.
2013 – "Game Over, Bitcoin" – @Internal of the business community | $ 110.68
"The bubble has burst and it only remains to watch its steady and inexorable decline.And then? It will collapse and disappear as https://t.co/OjKZZ43XyW & Lehman Brothers, n & # 39; Existing in the memory of economists " pic.twitter.com/KbAXSbqnw1
– $ carface (@TraderScarface) March 2, 2019
Industry experts and seasoned investors firmly believe that 2019 will not be different for Bitcoin, especially given the unexpected arrival of institutional investors and financial institutions in the cryptocurrency industry.
Why Bitcoin occupies a stronger place today than in 2017
The entry of real institutional investors into the cryptography industry places the asset class at a stronger place than when prices were at a record high. | Source: Shutterstock
On February 1, Ari Paul, Chief Investment Officer at Blocktower, said he was too optimistic about institutional investors' commitment to cryptocurrency.
At the time, Paul had stated that he expected institutional investors to enter the cryptocurrency market by the third quarter of 2019.
"I was too optimistic about the pace of institutional adoption in the past. This happens, but I can not estimate which quarter (whether this year or 2022) we will see a sharp rise. As a humble guess, something like Q3 2019, "said Paul.
However, in the two weeks following the release of Paul's statement, Anthony Pompliano of Morgan Creek announced that two US public pension funds were investing in a cryptocurrency fund.
This morning, our Morgan Creek Digital team announced a new $ 40 million crypto venture capital fund, based on two public pension plans.
Institutions do not come.
They are already there. ?
– Pomp (@APompliano) February 12, 2019
The institutional adoption of encrypted currencies has arrived faster than the expectations of existing investors in the sector.
Shortly after, Julius Baer, one of Switzerland's largest private banks, provided customers with access to cryptocurrency, the Nasdaq launched the Bitcoin and Ethereum indices, and Fidelity announced the creation of a cryptocurrency conservation service.
"At Julius Baer, we believe that digital assets will become a legitimate sustainable asset class in an investor's portfolio," said Peter Gerlach, Chief Market Officer at Julius Baer and proposed to the Board of Directors of the SEBA.
As reported by CCN, the Singapore Sovereign Wealth Fund GIC invested in Coinbase in late 2018, which could fuel investor confidence in the long-term growth of the cryptocurrency industry.
The preoccupation of skeptics about the state of British Columbia following a major correction has always been the lack of liquidity and activity in the cryptocurrency market.
As of March 2, the daily volume of the cryptocurrency foreign exchange market is estimated at about $ 24 billion, and the over-the-counter digital asset market is at least twice as large as the volume of the foreign exchange market . .
With the momentum gained by Bitcoin after recording its first green monthly candle in eight months since July 2018, which refers to a net gain in value over 30 days, analysts predict that the asset class will begin a sustained recovery in the coming months.
$ BTC Monthly chart
All I have to say is that the previous "bullish engulfing" candle has set up a perfect ramp leading to the current bullish monthly candle. pic.twitter.com/u16Mci5MCN
– Josh Rager ? (@Josh_Rager) March 2, 2019
Prediction of short-term movements of Crypto
In the short term, traders typically expect Bitcoin to maintain its low volatility in a tight price range.
If the flagship cryptocurrency can clearly break out of key resistance levels, especially between $ 4,000 and $ 4,200, which it was already struggling to cross, the asset could then take a new impetus to begin a phase of accumulation. .
Market analyst David Puell said USD 4,200 was an important level for Bitcoin, as it shows the average price of acquisition by the market.
$ BTC: Current state of the price models:
$ 1/4 200: The realized price is the average of what the market has paid for their coins. This should serve as resistance, as weak hands are discharged to equilibrium (see 2015).
$ 2,823: Delta price reaches new lows, forming fishnet with NVT prices pic.twitter.com/2vKG1Z5yz1
– David Puell (@kenoshaking) March 1, 2019
The price movement in the cryptocurrency market will largely depend on BTC's ability to break the $ 4,200 mark and escape the $ 3,100 to $ 4,000 recorded since November, more than three months ago.
Several tokens and small-cap crypto-currencies such as Binance Coin and Basic Attention Token have seen relatively large gains in recent weeks against both BTC and the US dollar.
It's only a matter of time before big caps do the same.
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