In 2018 it has become perfect that each of these funded ICOs is not assiduousness by actual tech experienced VCs as they were typically not tokens users wanted really wish to invest into. Before, all of these coins were connected to the increasing charges of Ethereum and Bitcoin, however at presnet it is pulling them down. They are all connected, and the large part of the complete market cap is plummeting the cryptocurrency ship in overall. If you were to apply the Fibonacci retracement tool, you can assume that 61.8% is the level that is closest to the resistance. This seems to be closer to the dynamic resistance in the case of moving averages as well. There are also signals like the SMA being 100 which is lower than the longer-term SMA which is 200 that indicates that the path of least resistance is downward and there are more chances for a selloff to resume rather than reverse. The selling pressure is clearly evident from the widening gap between the moving averages.
Another indicator that signals continuation of the trend is the bearish flag that the current consolidation seems to carry. You could confirm it though when there is a break below the spike that touches the $5200 area.
While the stochastic is pointing down to confirm that the sellers are returning, another indicator that the bears are eager to return is the fact that the oscillators are all set to turn lower without having hit the overbought zone.
The uncertainty on the bitcoin cash hard fork did create rough times for cryptocurrencies at large. it reminded the investors of this impending issue that might arise for other altcoins to at some point resulting in a potentially large loss in value. As you know downward moves in the price of the Bitcoin are known as corrections. It is called so because of the trend as far as bitcoin is concerned is usually upwards. An analysis of the chart on a four-hour time frame indicates that the bitcoin that has been at the bottom of the descending channel is due for a bounce. But the spur would only ensure a correction that is just enough for it to hover In an area just below the channel top of $ 6,200.
Though a trickle of forecasters count on the chances for more purchasers to haste in and official investments that are predictable to move in 2019 it might aid to relax losses, most of them trust bitcoin is out of track for ricochet in 2018. It is because it confidently will take months to calm down the losses. Bitcoin itself is hardy, proven by its existence of numerous Mt. Gox-type events and numerous up-and-down cycles. The long-term curve for Bitcoin is up and to the right. After the not so famous coins run out of vanish and cash, the market will develop a stronger. Numerous bosses became delusional due to their knowledge of itinerant the world and implementation their ICOs, thinking that ETH nd BTC will only go up and up while failing to exchange enough of their cryptocurrency for fiat. Not only did they have startup risk, but they unwisely added FX (foreign exchange) risk.
As of now is that these weak, never-should-have-been-funded beginers will run out of cash sooner than anticipated, as their cryptocurrency is valueless when rehabilitated to fiat than they thought at the time they completed their financings. The flushing out of these coins currently flagging the market will drive the market up. Nowadays, startups exchange their cryptocurrency in fiat the instant they get it.
