This week the crypto market starts generally flat. Since the 8 of August bitcoin was stuck on the $6,400 mark. The market cap fluctuates in the range of $210 to $230 billion during the last two weeks. The major altcoins are at their lows and they can’t attract buyers due to the crisis of confidence in the industry.
Because of the downward move and the lack of positive news around cryptocurrency Bitcoin seems to be affected in a negative way. Potentially the market lull can form the basis for a strong movements in either direction. In these conditions, the importance of the closest support and resistance levels drastically increases. In our case, these levels are $6000 and $6600 respectively. Going out of this tight range can likely strengthen the bitcoin movement.
The dull crypto market dynamics also reflects results of CoinApi research, which showed a significant decrease of trading activity on the largest crypto exchanges. Coinbase volumes plummeted 81% to $3.9 bln last month compared to its historical maximum at $21 in January 2017.
The positive shift of this situation is the creation of various physical projects based on the blockchain technology. Deloitte conducted a research among companies with income up to $0.5 bln and found out that 23% of them have plans to invest in blockchain technologies between $5 – $10 mln in 2019. For instance, the delivery company UPS have recently applied for a patent to use blockchain technology in their delivery processes.
These factors don’t influence the market directly albeit in long perspective create a fundamental basis to reduce volatility and substantiate the rates movements.