Bitcoin Bulls Disappointed, Blockchain Week Brings $52 Billion Drop in Value
Consensus 2018, or the Blockchain Week New York City failed to repeat its performance as the bitcoin rocket thruster. Unlike last year, the conference proved to be a dud, failing to make any mark on bitcoin value this time. In fact, during the conference, the largest cryptocurrency in the world lost $52 billion in market value.
Before the event, Fundstrat Global Advisors’ technician Robert Sluymer started making predictions about the eventual rise of the coin from the abyss. He said that the currency had bottomed out and it was time it will go way back up. He stated that that the upside is only days away and the recovery period of cryptocurrencies has started. The Blockchain Week could have proved as the biggest catalyst for digital coin prices this year, except that it didn’t.
Analysts at Fundstrat noted rallies in bitcoin prices during the past events and they believed that it would repeat in 2018 too. Tom Lee, Fundstrat CEO and an avid crypto bull predicted that the coin will start recovering soon and go over the $15,000 mark soon. The prices didn’t move according to his predictions. The premier crypto asset was trading at $8,360 and touched the $8,000 mark on May 18. Investors are still unable to find out what went wrong with the prices.
As expected, the conference focused upon regulatory pressures mounting up on these coins. Some attendees even complained about the lack of fresh perspective among the experts. Some other claimed that the quality of experts was low during the Manhattan event. It appeared that the event focused on all the ways the industry is failing or troubled, instead of bringing new concepts of revitalizing this sector. Fundamental problems like centralization and scalability were discussed less than the FUD over regulations.
This didn’t help the falling prices of the currencies. The slump continued, and no ray of hope shined on the bulls. We can still expect the prices of the coins to rise, albeit slowly this year. Investors must accept that events like Blockchain Week cannot always foster the bullish sentiment in the community. If not done right, they could bottle up more frustrations in the bulls. This year, there could be another event that triggers the bullish run of the coins.
Technical analyst Aayush Jindal believes that ‘there is a monster bearish trend line forming with resistance at $8,300 on the 4-hours chart of the BTC/USD pair.’ Once bitcoin breaks this resistance, it could enter a long-term bullish trend.
Some analysts also predict that the price dud in May will appear trivial by the end of the year. Barclay’s analysts don’t look as convinced. They predict that the downward spiral in the currencies will continue for some time.
Digital coin enthusiasts are panicking because of the lack of push they expected from the event. The focus of the industry is shifting towards regulations instead of innovations. If news of new collaborations, better technology and innovation fails to reach the community, we can expect the coins to stay low.