Ever since this month, everyone’s talking about the bitcoin or cryptocurrency bubble bursting. Skeptics have been waiting a long time to say this but then again, they were probably among the first people to miss the opportunities that presented themselves this year. The fact that cryptocurrency prices have consolidated should be heavily shadowed by the immense increase all crypto’s have seen this year; some to the tune of tens of thousands of percentage points.
But this is the here and now and it looks like investors are waiting on the sidelines as they try and figure out what the next move for countries like China will be. This is, of course, after the news was released that China would be shutting down operations of its cryptocurrency exchanges by the end of October.
Traders have no interest in building up positions right now because of the uncertain outlook of cryptocurrencies. To that end, it’s also been seen in the cryptocurrency trading volumes but how much lighter they’ve become recently. After September’s rally around the 15th, the bearish sentiment began to really weigh in on the market. Weaker selling pressure did end up helping bitcoin regain some tractions but the gains were minimal.
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As of now, China could be the one to blame for the lack in price action of cryptocurrencies overall. But let’s not forget that cryptocurrency and the breakout that it was was far over bought. So it would stand to reason that there should be a healthy retracement for prices. So many see right now as the make or break level for bitcoin and possibly other cryptocurrencies. Since they’ve been in a holding pattern for some time now, a break below current support or a break above current resistance could suggest a trend to continue in scenario comes first.
This factor has many cryptocurrency investors waiting in the wings to see what happens next in the cryptocurrency saga.