We no longer expect the sharp rise of bitcoin

The most popular cryptocurrency - Bitcoin - experienced a maximum drop in 20 months. According to many traders, the reason for this collapse was the breakdown of the downward triangle. Thanks to him, the main coin for a month was within 10 thousand dollars.
The last time this was observed in January 2018. It was then that after a large-scale rally of several months, Bitcoin reached $ 20 thousand, then it began to fall and at the end of January was already at $ 12 thousand. The fall continued further, so that by the end of the year, cryptocurrency was balancing about 3 thousand dollars. Analysts explained this, first of all, by regulatory problems and system updates, which, as a rule, create a downward trend.
Now the whole thing is a sharp decrease in the hashrate of cryptocurrency. This indicator fell by 30% in one day, which shows a short-term decrease in the total bitcoin mining power. From sharp changes in the hash rate, the bitcoin rate begins to deviate sharply from the predicted values.
Many explain the drop in the hash rate by the events in China, but it is not yet clear what specific fact caused such a significant decrease. The only known at the moment is that the Chinese authorities will begin to implement measures to limit the production of cryptocurrencies. However, concrete actions in a short time were out of the question.
in addition to a sharp drop in the processing power of the network, which affects the functionality of the currency and its demand, the immediate trigger for lowering bitcoin quotes could be the unsuccessful launch of Bakkt's delivery of bitcoin futures. The platform for institutional investors began work on September 23, but trading volumes did not come close to the expectations of the participants.
At the same time, there are currently no fundamental reasons for a significant correction in the bitcoin market. The decline that we are witnessing was the result of a speculative game associated with a marked increase in market supply. This is confirmed by the fact that, despite the depreciation, the trading volume doubled - that is, large Bitcoin holders decided to take profits from the previous growth cycle.
UPS AND DOWNS
Some experts do not exclude that the cryptocurrency will be able to win back the fall in the short term, but indicate that the risks of a repetition of the situation are increasing. Also, according to some metrics of technical analysis, for example, according to the “declining triangle”, “bearish” sentiments will soon begin to prevail in the market. Based on this, in the coming months, Bitcoin expects, if not depreciation, then high volatility.
With such movements, it is difficult to make a forecast for the future before the end of the year. But in the long term, many market participants have confidence that the upward movement will resume, especially since bitcoin remains the dominant cryptocurrency, and in accordance with the network setting, its absolute offer is limited
in the future, bitcoin has every chance to return to a level above 10 thousand dollars. The mentioned decrease in the hash rate is most likely due to the halved remuneration of miners planned for May 2020: from 12.5 BTC to 6.25 BTC for each new block. This, in turn, will lead to a decrease in the growth rate of the volume of coins in circulation and, accordingly, should play a role in increasing the rate
FUNDAMENTAL FACTORS
Firstly, the emergence of alternative cryptocurrency instruments, primarily, Libra coins. In all likelihood, the fundamental problems that prevented its entry into the market will be successfully resolved. The recently presented basket structure, on which this coin will be calculated, shows that the dollar will be 50% of it. Accordingly, it is likely to receive the right to appeal within the dollar zone, which means it can become a significant competitor for bitcoin, primarily in a number of transactions.
And on the other hand, we see that the legislation governing the circulation of bitcoin in different countries is still being formed very slowly. Largely because of this, the potential that investors were counting on has not yet been realized. Hence the desire to take profits, the result of which we see today