Note: “This analysis is an adaptation from the work of Mati Greenspan, Senior Market Analyst at eToro
- Bitcoin nosedives to reach newer lows for 2018
- Did Bithumb’s volume promotion caused several months of stabilization in prices
- Bitcoin further meltdown takes it to new support zone.
Did Bithumb’s promotional active lead to price stabilization of cryptocurrencies
Another day when the bears ruled the markets and took bitcoin to its new low of 2018. While analyst across the board still trying to find answers of this fall, Cryptocompare seems to how found something interesting regarding Bitcoin’s multi-month stability before the great dive. Crypto compare’s new report “CCCAGG Exchange Review” took a good hard look at global volumes on crypto exchanges and where they’re coming from. One of the key findings of the report was the incredible impact of a series of promotions from the Korean exchange Bithumb. The following chart from the report shows data points of various Bithumb’s various promotions against bitcoin’s price, which clearly shows bitcoin’s break below $6,000 came shortly after the promotion ended.
If these findings are indeed accurate, one will say that blaming South Korea for the drop wouldn’t exactly be correct. More likely, it appears that the volume promotion by Bithumb caused several months of stabilization in prices. While this is still very much theoretical at this point, one can definitely be sure that all of the recent volatility in the crypto markets has been driven by technical factors. After the breakout of $5,000, Bitcoin had a light support at $3,500, which has now been broken. The next key area of support that is being tested now is $3,000.
Bitcoin falls takes it to new support zone
The crypto markets have now passed several dismal milestones.