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In the midst of a severe market slump that has seen Bitcoin slide more than 80 percent from 2017 peaks, Zhao Changpeng is pretty optimistic about crypto. We must note that the fall of Bitcoin has dragged altcoins to new levels with some dropping by as much as 95 percent from their 2017 highs.
Nonetheless, Binance is having a stellar year. Pulling in around $3 billion in revenue in the first half of the year the exchange is officially the largest in the world by trading volumes. But contrary to expectations, this super performance coincides with a market wide slump that has seen total market cap slide from $800 billion to around $180 billion. However, fading these are year to year high trading volumes indicative of widespread adoption and/or interest in the space.
While talking to CNBC, Zhao said he wasn’t sure of what exactly could catalyze a market revival but with user base and deposit rate expanding, a recovery was inevitable. Binance has a global presence and recently opened a branch in Uganda.
Just read an estimate from the TABB Group (in a $5000 report) that OTC crypto markets exceed exchange volumes by 2-3x. That would mean 1-1.5MM BTC is traded OTC *daily*. Strange it’s not visible on the blockchain, which shows a meager 100k/day.
— Eric Wall (@ercwl) July 29, 2018
Besides, as blockchain infrastructure continue to pick pace, the ecosystem continues to grow in strength becoming more robust as major players comply with regulatory requirement. To that end, Binance desires to place itself in a strategic position to tap increasing institutional interest.
Interesting Read: Bitcoin Break to $5,600 is Good For Crypto, Says Major Investor
After all, as one of the few exchanges that is yet to experience a hack thanks to their firm technological and security foundation. Furthermore, incentives such as tiered trading fee discount programs, creation of sub-accounts and more support for corporate accounts would go a long way in sating institutions keen on diversifying into the space.
BTC/USD Price Analysis
Like the rest of the market, BTC/USD is deep in loss territory printing 14 percent in the last week and closing below important support levels at the back of strong volumes. Though we expect prices to stabilize over the weekend, the simple fact is that we have a bear break out pattern below 2018 lows of $5,800.
This is not only bad for the coin’s market cap but the (sometimes) direct relationship between BTC and Altcoin could spur further market losses as the sell off continues. From previous BTC/USD trade plan we expect prices to find support at $4,500.
However, if the selloff is strong then BTC could further drop to $3000. Inside this $1,500 is where buyers should find loading opportunities with stops at immediate support level.
If anything, our last BTC/USD trade plan is true. And with Bitcoin prices dropping and slicing through several support lines as a whole bar prints below $5,800, we expect further declines throughout next week. As aforementioned, our immediate bear targets are clear. Since the path of least resistance is southwards, we suggest selling on pull backs. Safe stops will be at Nov 15 highs of $6,000.
All Charts Courtesy of Trading View
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.
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