Crypto market drop is more like consolidation than capitulation: bitfinex

Despite the current consolidation of Cryptomarkt, investors want to increase their crypto win via Altcoins.

Last week the cryptomarkt was flooded by a Gulf of Beerarish Trends when the prices of Top Activa fell. Bitcoin (BTC), for example, dropped from $ 110,000 to a market price of $ 108,500 during the week.

This week, the market experienced a moderate reversal of the downward trend, with a return to the prices. According to the last weekly report from Crypto Exchange Bitfinex, the cryptocurrency market is currently consolidated instead of capitulating. For this reason, the market has remained relatively stable compared to its movement from the past week.

Why a consolidation?

From last week, everyone who studies the market maps could easily speculate that the cryptomarkt was on their way to a capitulation. For the context, market capitulation occurs when investors sell their digital assets quickly, even with a loss, for fear that market prices will not recover.

However, this week’s statistics have led to the analysts of Bitfinex to believe that market consolidation is underway. In his last issue of Bitfinex Alpha, the experts of the Exchange marked Reasons behind the claim.

Consolidation occurs when the prices of Crypto assets run around a specific range of support and resistance levels, after a considerable price change. This phase is often characterized by a layer of trade volume, which indicates that investors are currently in a market phase without indecision because they remain calm and waiting for a price drop or breakdown.

The Bitfinex analysts emphasized that large cryptocurrencies have undergone a similar price movement in the past week. One of the factors that fueled the sudden market movement was the after -effect of the Federal Reserve rate reduction on September 17.

The influx of capital continues

Despite the downward trend, the report revealed that investors continued to explore cryptocurrencies with promising returns.

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“Nevertheless, selective rotation in speculative altcoins remained, which reflects the continuous search of investors according to opportunities with a higher beta, even when the total market capitalization 5.9 percent in the week lowered to $ 3.7 trillion, by 12.6 percent lower than recent highlights,” the report explained.

This continuous capital inflow shows “the structural cycle of the current bull market.” The BitFinex report emphasized that the current crypto market cycle has performed better than that of the previous cycle.

In addition to the increased acceptance, more countries have enabled companies and investors to delve into crypto. Some governments, such as the US, have adopted a crypto -friendly attitude.