Bitcoin continues to decline amid increasing bear market indicators

It had unanimously predicted crypto analysts that bitcoin was on its way to a new bull market through the end of 2019 and that any limited dips would be opportunities to buy or open a long position.

The best part of 2019 is the third quarter where Bitcoin was in a strong uptrend after hitting market lows at $3,200 to rise strongly and reaching $14,000 forming a new high.

Despite the high expectations that the upward trend of Bitcoin will continue XM ARABIA However, it quickly and aggressively reversed direction and is currently trading below the $8000 level, and any price rebound to higher levels presents opportunities to get Bitcoin short again.

After the gradual weakness of Bitcoin in the past few weeks, fears are growing that Bitcoin will continue to decline to new lows in the fourth quarter of 2019.



Another sign of the lack of activity and enthusiasm in the digital market is the drop in the number of transactions, which fell to 690,000 transactions from 800,000 each day.

In general, the market is preparing for new lower levels and if such a scenario occurs, Bitcoin prices will return to their fall 2018 levels.

Many digital market experts see that there is a reason for the decline of Bitcoin and the disappointing trading volume of Bitcoin futures contracts launched by the Bakkt platform, as expectations were high about the launch of futures contracts and the rise in cryptocurrency prices, but the exchange’s reception of futures contracts came in an unexpected way. Absolutely expected.

The volume of open contracts for the Bakkt platform of the Intercontinental Group of the New York Stock Exchange in the first week was about 623 contracts, much less than the CME futures contracts in the first week which recorded about 4,099 contracts.

There are some analysts who believe that the strength of the US dollar, US stocks and treasury bond yields was a major reason for withdrawing part of the investments from the digital market, and this led to the collapse of the Bitcoin currency, and this also created a state of panic among investors, and sales intensified.

Concerns still surround the Facebook digital currency “Libra”, which prompted the company to backtrack on announcing a specific time frame for the launch of the new currency, which renewed regulatory concerns for digital currencies and this was a strong pressure factor on the currencies that pushed its decline.

The Financial Conduct Authority, the UK's main financial regulator, reported that crypto-related investigations surged in 2019 with an increase of 74%, with the number of crypto-related cases increasing from 50 in 2018 to 87 in 2019.

This may be positive news for crypto companies that are behaving legally and it will also be encouraging as they want to drive out bad actors.

Mohamed Abdel Khaleq

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