Forex And Cryptocurrency Forecast For December 7 - 11

Cryptocurrencies

Bitcoin has been pounding towards the psychologically important $20,000 level over the past two weeks. And although it updated the historical high, reaching the mark of $19,930 on December 1, all attempts to conquer the height of twenty thousand ended in profit taking and a rollback.

According to a number of experts, in addition to triggering stop orders, there are also political reasons that force investors to go to fiat. So, according to one version, the correction of the main cryptocurrency on November 25-26 from $19,480 to $16,280, which had many chances to develop into a catastrophic collapse, was associated with the decision of the administration of American President Donald Trump to tighten control over the circulation of digital assets. Officials chose to change the rules for registering cryptocurrency wallets as one of the ways to manage transactions.

Many crypto companies have already begun developing new versions of wallets, which will receive permits from the US Securities and Exchange Commission before launching. Trump is probably trying to resist China in this way, which is preparing to release its own cryptocurrency. If the digital yuan becomes a cross-border payment instrument, it can be used instead of the dollar. This will make sanctions against China ineffective, and Washington will lose the ability to put pressure on Beijing.

“Bitcoin has an indirect relationship to everything that happens", Mark Usko, head of Morgan Creek investment company, comments, "but even the first statements by representatives of the American government about the desire to start controlling the industry brought it down by several thousand dollars in a matter of hours".

After this drop, bitcoin returned to the $19,000 zone very quickly. Along with the BTC/USD quotes, the total market capitalization of the crypto market has also recovered. It stood at $582 billion at its peak on November 25, then dipped to $500bn on November 27. And now, seven days later, on December 04, it is at $575 billion.

According to analytical companies Glassnode and BitInfoCharts, the number of addresses containing more than one bitcoin is also steadily growing, exceeding 820 thousand at the moment. These wallets hold 95% of the total BTC market volume. In total, there are 32.6 million addresses with a non-zero balance in the world.

Despite the seemingly positive dynamics, the fall of bitcoin by 16.4% on November 25-26shows the precariousness of its current state. Both investors and traders understand this, and they are ready to start massively closing long positions at any time. Bitcoin's Crypto Fear & Greed Index rose from 86 to 92 in seven days, showing that the overbought coin is only getting worse, which could lead to another strong correction. In the meantime, the pair has chosen the $19,000 horizon as the Pivot Point, along which it has been moving throughout the past week.

As for altcoins, they, rise and fall for the most part, following the reference cryptocurrency. So, despite the increase in the total capitalization of the crypto market, the bitcoin dominance indicator has remained practically unchanged and is 62.44% (62.33% a week ago). Similar indicators of altcoins from the TOP-10 have hardly changed either. Although, we can highlight the ripple (XRP/USD), whose share in the total market capitalization has grown 1.8 times over the month, from 2.69% to 4.89%. This is because Flare Networks will airdrop spark coins on December 12th based on a snapshot of all XRP Ledger addresses. Thanks to this, each ripple holder will receive free spark in a 1:1 ratio, which is reflected in the popularity of this coin and the growth of its quotes. After a long stagnation in the region of $ 0.24, it rose to $ 0.77 at the high over the past three weeks, and it is quoted in the zone of $ 0.60 at the time of writing.

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Notice: These materials should not be deemed a recommendation for investment or guidance for working on financial markets: they are for informative purposes only. Trading on financial markets is ...

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