Bitcoin (BTC) currently trades at $8,357 after falling to$8,100 levels which held firmly. The price is now looking bullish short term and might continue trading in the rising wedge for the next few weeks. It is possible that the price falls below the wedge close to $11,000 levels validating the stance of most analysts. While Consensus this year was attended by over 8000 members and Lamborghinis were spotted in the vicinity of the conference, it does not mean that everyone will just up and buy on one particular day to drive the price up to new highs. It is usual for mainstream investors to expect that but there are new players in the game who do not play by the same rules.
Besides, the market cap of Bitcoin (BTC) has grown substantially big to be dominated by a few billionaires or a group of eager millionaires. Having said that, the interest of big players in Bitcoin (BTC) has also been on the rise. Those big players are institutional investors with billions of dollars at their disposal to invest in Bitcoin (BTC) or other cryptocurrencies. The difference is that they are not going to change their rules for Bitcoin (BTC). They are going to use the same tactics of manipulating the price so they can put in their iceberg orders in order to avoid spiking the price up in one go which will result in mass profit taking and the ‘clever’ institutional investors would be left holding the bags.
It might seem like a setback to think that Consensus 2018 has not had any impact on the price but it should be borne in mind that the rules of the game have significantly changed. As for impact, big players like NASDAQ trying to get involved in cryptocurrencies is proof enough of the impact that Bitcoin (BTC) has made in the recent past. A lot of big players are waiting on the sideline to get involved. While the situation might have appeared a bit murky the past few months, the big picture is very clear now.
Investors with billions to invest in a risky asset like Bitcoin (BTC) do not buy based on sudden whims or hype. They wait for the big pieces to fall in place before they get involved. Right now, that big piece is the comparison to 2013. Bitcoin (BTC) appears to be following the same pattern by accumulating before a big rally. Before the first signs of that rally materialize, big investors will not feel comfortable investing. However, the moment we see solid signs of a rally, big money is going to jump on the train like there is no tomorrow, the price will rise to new highs in a matter of weeks and for the common investor, it might be a bit too late to get involved. On the other hand, if these signs are invalidated, the sell off may not be a very quick one as the recent developments in the crypto markets has created a lot of ‘hidden euphoria’ which will manifest itself in the form of swift recoveries as we witnessed when Bitcoin (BTC) fell below $6,000.