The digital currency market seems pretty overbought. The increasing popularity and market access have allowed cryptocurrency prices to make a series of new peaks, but at the moment it is likely to have reached a short-term top. Everyone sees a serious future in the blockchain industry, and that is probably the case, but in the short term, the levels are pretty high and it is likely that we see a correction on the market. Fundamentally, we can spot a cooling in the search for digital currencies from retail traders, with Google searches declining after reaching a record high. This creates good prerequisites for big players to try to frighten the smaller investors out of the market.
Of course, after an eventual correction, we will again look for appropriate purchase levels, but the current levels are too high and the risk is too big. Here are the statistics in 4 charts.
The market capitalization of cryptocurrencies has increased more than twice, reaching nearly $ 160,000 million. Bitcoin continues to be about 45% of the entire digital currency market.
Google's searches of cryptocurrencies statistics on the other hand show a peak and reversal, which suggests some cooling in sentiment and possible short term over-saturation in the market.
Charts source: coin.dance
Trader Nikolay Georgiev
Read more:
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.