29.11.201809:12 Forex Analysis & Reviews: Bitcoin analysis for 29/11/2018

The current situation in the crypto markets

The current bear markets are "golden time" for possession of cryptocurrencies - said today co-founder of Fundstrat Global Advisors, Tom Lee, during a speech at BlockShow Asia 2018.

He listed three main reasons for the recent market crash: Bitcoin Cash's hard-fork dispute, regulatory action by the US Securities and Exchange Commission (SEC) forcing ICO to return funds to investors, and the "terrible" state of global markets, which fell by around 10 percent in October and November. The investor did not want to change his positive attitude towards cryptocurrencies. Describing the current situation, Lee explained: "We are dealing with a price correction, which caused a drop in price even below 200 days [a popular technical indicator used by investors to analyze price trends], but if you have time, there will be an increase. It will not happen in three months or one year, but in two to three years, and this is the golden time to have a crypto. As soon as Bitcoin exceeds its 200-day period, we know that a flood of money will come".

According to his speech at BlockShow, the crypto has only 50 million active wallets compared to 2.27 million PayPal accounts and 4.6 billion Visa and MasterCard accounts. Comparing Bitcoin with other payment systems in terms of the value of social networks, Lee supposes that in ten years, Bitcoin could be worth 10 million dollars for one coin.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The market has broken above the technical resistance level at $4,000 and made a new local high at the level of $4,350. Currently, the market is consolidating the gains, but the support at the level of $4,000 is still very possible to hit for a test. The larger time frame trend remains bearish.