The International Monetary Fund (IMF) downgraded the world economic growth outlook, by spurring risk-off trading across the globe. This pushed Bitcoin to a high of $6,656, but the price retraced fast as the move wasn’t supported by volume. What this means is that any breakout, upwards or downwards, should have healthy volume behind it. Only this can assure that the price continues its move further. If the volume isn’t there, it is more than likely that the breakout is short-lived.
What contained the bitcoin rally is that speculators failed to see that the IMF has also raised concerns about the cryptocurrency space. This was clearly stated in the IMF’s World Outlook Report: “Cybersecurity breaches and cyber-attacks on critical financial infrastructure represent an additional source of risk because they could undermine cross-border payment systems and disrupt the flow of goods and services. Continued rapid growth of crypto assets could create new vulnerabilities in the international financial system.”
As it has been the case recently, Bitcoin’s upward momentum is lacking one critical element; participation from the wider community. Remember, last year’s move towards $20K was supported by the retail client. It was the masses going crazy about the cryptocurrency thinking that buying…
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