“The crypt market suffers from fear and uncertainty (FUD), despite the growing party and strong technical tools”
The cryptocurrency market has been harassed by fear and uncertainty in recent months. Many investors questioned the long -term profitability of digital currencies. Despite constantly disturbing the acceptance of cryptocurrency and rising prices, there are still fears that have contributed to this mood.
One of the common topics between FUD (fear, uncertainty and doubt) is perceived by “total supply of cryptocurrencies”. Some market participants believe that a significant number of total cryptocurrency supply has been burned or removed from circulatory with various means, such as mining equipment failures, exchange of exchange or other events. As a result, they claim that there is not enough new coins to raise prices and create a sense of lack.
However, this perspective is argued by technical indicators, which indicate that the total supply of cryptocurrencies is still relatively high compared to the number of existing circulatory coins. The most important example of this is the “general supply” indicators, which estimated that about 40-50% of all Bitcoins were burned or removed from its circulation.
Another issue that contributes to FUD is the lack of transparency and regulation in the cryptocurrency space. The continuous flow of new coins to market trading, along with the decentralized nature of cryptocurrencies, can lead to uncertainty due to long -term real estate perspectives. In addition, the changes and updates of the adjustment were made with common fears and uncertainty, so some investors asked if the market was “safe” or not.
Despite these fears, technical indicators give a more optimistic view of the future of cryptocurrency markets. For example, the relative force indicator (RSI) has increased up in many cryptocurrencies, which indicates a strong pressure of buying a bull. In addition, changing the average convergence (MacD) indicates that the price movement can be reversed and start moving in the opposite direction.
The purchase of a signal is also reinforced by the growing number of institutional investors entering the market. Because more well -established players join the fight, present their experience and resources that can help raise prices and create a sense of investors’ trust.
To sum up, although FUD remains a great problem on the cryptocurrency market, this is not necessarily an insurmountable problem. Focusing on technical indicators, such as joint supply, RSI, MacD and institutional investors, investors can better understand market dynamics and make more reasonable decisions to distribute capital.
Technical indicators used:
- General supply (TSS): evaluates the number of coins that have been burned or removed from the circulation since the creation of bitcoins.
- Relative strength indicator (RSI): measuring the amount of price movement with a value above 70, indicating too much and less than 30, which indicates the overestimated conditions.
- Reduced medium convergence differences (MacD): shows price trends in calculating the difference between two medium traffic.
Sources:
- General estimates regarding the supply of cryptozlatas
- RSI calculations using API QUANDL
- MACD calculations using API QUANDL
