The cryptocurrency market has been consolidating after the previous crash that happened. In fact, it failed to show a recovery in prices. Many factors contributed to the weakness of the buying power, and specifically the fact that cryptos were overbought with no fundamentals behind this price hike. If you were wondering whether to Buy Bitcoins now that prices crashed, the answer is NO. In this article, we’re going to talk about 3 reasons why you shouldn’t Buy Bitcoins, and why it’s better to actually wait after the Bitcoin crash.
Reason #1: China is heavily cracking down on Cryptos
Recently, the Chinese authority has issued decrees for its local banks to stop any activity that includes cryptocurrencies. This alone is major bad news, as more than 60% of crypto users buy cryptos through financial institutions. The other 40% rely on physical meetups and P2P engagements. This banking outage causes a significant cut in crypto demands from one hand while instigating a heavy selloff from another. Combined, this is definitely bad news for the crypto market.
Reason #2: No Major Fundamentals in the Crypto sphere
The only factor that can revert a downtrend is good news. This often means that fundamental elements are essential to give buyers a reason to enter the market. Without good fundamental news, the only pressure on prices would be downwards, while buyers stand on the sidelines. That’s why you shouldn’t decide to Buy Bitcoins or other cryptocurrencies, as you’ll be the only buyer against millions of sellers.
A lot has happened in the past year, from advancements in the DeFi ecosystem, to bringing NFTs to the average Joe. This all helped prices push upwards and gave buyers a good reason to enter. What might this good reason be today? An undervalued crypto asset? Well, that’s not enough.
Reason #3: Technical formations signal a further crash downwards
Of course, this section depends on each cryptocurrency price-action. But in general, and since Bitcoin is still a leading crypto and has a dominance of 46%, most cryptos broke their strong support levels, and are on the decline for the second support. Those lower supports still have a long way to reach, and buyers shouldn’t consider entering on those current prices at all.
The Crypto Market at a Glance
In the past 7 days, ALL cryptocurrencies (with the exception of stablecoins) lost tremendously in their market cap. The crypto market was valued around USD 2.5 Trillion 2 months ago, and today stands around USD 1.2 Trillion. Despite this crash, stablecoins increased in market cap as most crypto traders aren’t liquidating their positions to cash, but rather convert their crypto holdings to stablecoins in order to catch lower prices and to “stay in the game”.
1- Bitcoin (BTC) : – 20.88 %
2- Ether (ETH) : – 26.44 %
3- Tether (USDT) : 0 %
4- Binance Coin (BNB): – 28.93 %
5- Cardano (ADA) : – 23.45 %
6- Ripple (XRP) : – 34.78 %
7- Dogecoin (DOGE) : – 40.78 %
8- USD Coin (USDC) : + 0 %
9- Polkadot (DOT): – 36.53 %
10- Uniswap (UNI) : – 30.42 %
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