Bitcoin is a wrong hiding place during volatile times - experts opinion
- Cryptocurrency market is not a haven during uncertainty and turbulence.
- BTC/USD needs to regain $3,700 as soon as possible.
Bitcoin is hovering around $3,600 handle amid low trading activity during Asian hours on Wednesday. The cryptocurrency market is somewhat sleepy and directionless, looking for a fresh catalyst.
As the global financial markets are plagued by political uncertainty, trade conflicts between the US and China, Brexit worries and a lot other unhappy developments, the cryptocurrency experts try to understand whether Bitcoin and other digital assets can be regarded as a haven during turbulent times.
Fred Wilson from Union Square Ventures believes that cryptos won’t protect us from the volatility on the stock markets.
"I think we will see major dislocations in the leadership of the United States, a bear market in stocks, a weakening economy, a number of issues with the global economy including a messy Brexit and a sluggish China," he wrote in his blog post. "All of this will lead to a more cautious stance by investors in the startup economy. And crypto will not be a haven for any of this although there will be signs of life in crypto land in 2019."
He expects that the market will retest new lows before bottom out in somewhere in 2019. He also foresees that the process of mass adoption will speed up especially in such areas as non-fungible tokens, and crypto gaming.
The first digital coin failed to clear a strong resistance at $3,700 on Monday. This area is strengthened by a confluence of SMA50 and SMA200 (4-hour chart), once it is removed, the recovery may be extended towards all the more critical hurdle of $3,800 guarded by SMA100 (4-hour).
On the downside, a failed recovery brings $3,500 back into focus. This area should hold to prevent a deeper sell-off with the next aim at $3,300.
BTC/USD, 4-hour chart
Author
Tanya Abrosimova
Independent Analyst
