Bitcoin Daily Analysis Update 02.02.18

Hello Cryptofriends,

As predicted, the downtrend continued today all the way down to test the 7.6k level, where we saw a strong level of support (finally!) and went back up $1k in less than an hour - remember when I spoke about trading opportunities in my last post? This is what I was talking about :).

Volume spiked and we went to test that 9k level which is showing some resistance. What isn't helping is all the negative attention Bitcoin is getting from the media about "being in a bubble", regulations etc... This is causing panic sells in the market and is scaring off those that don't have any skin in the game, as well as those who just FOMOed in.

But as the saying goes - when the herd does one thing, do the opposite and reap the profits! I believe the crypto technology is still in its infancy and has a lot of potential - we are just seeing a very strong market correction, which unlike what the media is saying is actually healthy for the Crypto world. Market cycles are normal, and those who leave now at a loss are likely to regret it when we see the end of this bear trend.

My opinion (and this is not financial advice or anything) is that the current market sentiment and confidence will drive the price even further down as there hasn't been a significant breakout upwards yet, but let's see how it develops over the next day. This space is still very new and most investors don't fully understand the tech so it's just the FOMO effect that got them onboard, and now they are just panic selling. Let's try and profit from this, easy money!

The question that remains is this: if the bear market continues and BTC does not come up with solutions to current issues of scalability etc., will it die? Will Bitcoin Cash or another similar cryptocurrency slay the dragon and take over? Let's hope not - Bitcoin is the brand ambassador for the mainstream public, we still need it for the time being...

Safe trading :)