Gavin Pannu, MSTA, CFTe is Market Analyst and Trade Mentor at London Academy of Trading (LAT). At LAT we have a new course developed covering Cryptocurrencies. The Complete Cryptocurrency Course. Please view here: https://lat.london/course/cryptocurrency-course/
The price of Bitcoin is currently being supported with a floor difficult to break. The recent selling pressure which is being maintained by buyers as a value area. Even with the market nearing its bottom and other altcoins collapsing further, the fundamentals are showing positive signs. Areas of regulatory, business and technological infrastructure are improving. In the short term investors will await for SEC’s decision on Cryptocurrency ETF approvals which may begin the upside momentum.
Even with fundamental improvements, the risk lies within individual cryptocurrencies itself. There has been a sell-off in Cryptocurrencies due to a single crypto known as Ethereum. It was widely assumed Ethereum was a better version of Bitcoin which would eventually capture most of the market share based on its advanced technological features and build quality.
With there being now over 2000 Cryptocurrencies, we are starting to see the market mature and begin to investigate deeper into which Cryptos they want to hold. A battle has begun between Cryptocurrencies and ICO’s to who can gain the most market share. If the market loses interest in a well-known Crypto with a large market share, this could lead to a systematic risk to the entire market as seen in Ethereum.