Trading | 5 months ago
In the Daily Crypto Analysis segment, we do the in-depth cryptocurrency market analysis by verifying the fundamentals and using multiple technical indicators. We provide the insights, and unbiased information on leading cryptocurrencies like Bitcoin, Ethereum and Dogecoin.
A combination of financial news and other factors from United States and specially China set the whole crypto market in flames. Chinese government has banned financial institutions including the insurance companies and payment companies from providing any kind of services related to cryptocurrencies. The institutions will not be able to accept any kind of virtual currencies for payment and settlement.
As a result of these restrictions from the world's second largest economy, created a bloodbath in the cryptocurrency market on Wednesday. Bitcoin fell as much as 15% against the US dollar in a single day. Currently the Bitcoin is trading at $36572 which is the lowest value in the last four months. Normal investing rules does not apply to Bitcoin as it is high risk and high reward speculative asset. However, one must look for long-term buying opportunities in Bitcoin at this price.
Ethereum experienced the largest one-day percentage loss on Wednesday in three months. Ethereum price fell by 28% against the US dollar after the reports confirming the ban on cryptocurrencies by Chinese government. Ethereum has lost about 41% of its value in the last 15 days.
However, this massive price correction also provided the buying opportunities to many traders and individuals. If anyone wishes to make money in crypto market, then they should just get used to these kind of price corrections. Currently Ethereum is trading at $2400, which is an important support level. One must look for buying opportunities in Ethereum at this price.
Few investors and television personalities took the help of social media and made the millions of people believe that cryptocurrencies like Dogecoin is valuable. However, the ban on cryptocurrencies by Chinese government created havoc across crypto markets.
Dogecoin fell by 31% against the US dollar on Wednesday. The little value of Dogecoin is derived from its decentralized network. Any negative news or positive news could result into a massive price gains or price corrections. One must be very careful while investing in crypto currencies like Dogecoin which possess almost no value at all.
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