According to a study conducted by Adamant Capital, the “bearish” cycle of the cryptocurrency market is ending and the accumulation phase is now underway.
As reported, during this phase the bitcoin rate will be in the corridor between $3,000, and $6,500, and after its completion, the growth cycle will begin. Analysts say that now “whales” are buying up the first cryptocurrency, the rate of which repeats the bear market of 2014 and 2015.
Researchers reported that many traders have left the cryptocurrency market, and “holders” and long-term investors are now in the foreground. At the same time, the average daily volatility of bitcoin has significantly decreased in the last two months and amounted to less than 5%. The same behavior of the first cryptocurrency rate was noted at the end of 2016, before its growth.
“During the accumulation phase, weak traders will try to exit the market, which they entered on the wave of growth, and strong traders will try to accumulate stocks of cryptocurrency, buying bitcoin at the lowest price. And these lows will be the bottom of the market,” analysts at Adamant Capital said.
Interestingly, the main driving force of the market, according to the researchers, are the millennials - people born after 1981. 92% of people of this generation do not trust banks. Thus, the majority of those who buy bitcoin belong to the millenial generation.
In addition, according to analysts, over the next five years, bitcoin will be distributed both in the retail sector and as a tool for hedging and preserving wealth.
Recently it was reported that, according to a study conducted by the CoinGecko portal, the total capitalization of the cryptocurrency market grew by 16.23% in the first quarter of 2019.
Now, let's move to the technical analysis of Bitcoin (BTC):
Over the past weekend, bitcoin rose to the resistance level of $5,300. After that, we observed consolidation at the support level of $5,130. Our forecast remains the same, we expect that bitcoin will break through the resistance level of $5,300. Now, the price of bitcoin is at the level of $5,250. The nearest resistance levels are $5,275, $5,300. The nearest support levels are $5,130, $5,050.
Technical analysis of Ethereum (ETH):
Over the past weekend, ethereum dropped to the support level of $164. This consolidation is temporary. The price rebounded from the support level of $164. Now, it is at around $170. In our opinion, ethereum will continue the uptrend. The nearest resistance levels are $173, $177. The nearest support levels are $168, $165.
Technical analysis of Ripple (XRP):
Over the past weekend, ripple also fell in price, breaking through the support levels of $0.3170, $0.3140 and reaching $0.3140. Now, the price of ripple has bounced up to $0.3230. We expect the continuation of the uptrend. The nearest resistance levels are $0.3250, $0.33. The nearest support levels are $0.3170, $0.3140.