Bitcoin’s growth momentum has led RSI out of the oversold area. This index rose above 30 on the daily charts. Last time the recovery of the index from oversold territory occurred in January of this year and preceded the stop of BTCUSD sale. A significant rally on this instrument began only two months later. However, it was a recovery after a very destructive decline. In previous episodes, the restoration of purchases in Bitcoin was much faster. So the daily fix of RSI above 30 should be considered as a very positive technical signal.
The growth is taking place at the moment when it became known that the SEC rejected the Bitwise request to launch Bitcoin-ETF. The market participants are so tired by the failed history of ETFs that recent news does not cause any dynamics at all. By default, most people understand that the regulator thinks the market is too volatile and won’t give it the “green light”.
Analysts at The TIE recently concluded that cryptocurrency headlines mentioned by the press had dropped significantly. We are talking about a drop of up to 90%, and it concerns all possible sources from the leading mainstream publications to Twitter accounts. The theory that the circle of digital currencies will narrow down to the few largest blockchains, around which the main dynamics will unfold, is gaining momentum.
Now already, we can see signs of the emergence of a new limited number of participants in the crypto market structure. The main focus is on Bitcoin, Ether and stablecoin USDT.
Bitcoin is the first and benchmark cryptocurrency. Ethereum is the leading altcoin. USDT uses as a “safe-heaven” in turbulent times, and this cryptocurrency serves as an XRP in the context of money transfers. The digital currencies will likely follow the path of the classical IT-market model. It is often in IT that 2-3 major players receives 80% of the market, while the other players try to share the rest 20%.
The FxPro Analyst Team