The dynamics which drive the Bitcoin market seem to have a lot of similarities with the atmospheric dynamics that drive the thunderstorm (electrical storm) lifecycle. Particularly, since Crypto.IQ is largely based in Sarasota, FL, then we can easily compare and contrast the BTC market to the sea breeze.
The sun rises and starts to warm the ground on a distinctive summer day in Florida, US. This solar energy is transmitted into the lowest region of the atmosphere close to the surface, basically, the air particles close to the ground start to increase in energy and buoyancy (airiness). This, therefore, can be compared with how BTC adoption grows, like when tens of thousands of BTC ATMs are used and shops start to allow BTC, that adds energy into the BTC system.
The air particles close to the ground don’t instantly flare up into an electrical storm since a stable layer of air always exists precisely above the ground known as inversion. This effect stops the warmed air close to the ground from ascending and is produced by subsidence in the atmosphere. This can be compared to bottom pressure from short (minor) sellers on CME, BitMEX, CBoE and Bitfinex. Fundamentally, although BTC adoption is growing and individuals globally are purchasing BTC massively, the recovery can be stopped if minor sellers are attempting to make the cryptocurrency market collapse.
The BTC price chart for the past few weeks is revelatory of this postulated sequence of events. A recovery started from users buying BTC and later got stamped out by a bigger market force, possibly short sellers. This scenario can also be compared to certain energetic surface air particles ascending into a cloud during the morning time but flunking to penetrate the subsidence inversion, and finally, the cloud scatters.
In the BTC market, the sea breeze is largely comparable to a large short squeeze which quickly pushes the BTC price up and decimates the short sellers. If the rebound from the short squeeze is adequate, and the short sellers get retted, then BTC market can proceed to recover.
Therefore, since the short sellers lowered the crypto market for a while the BTC market had turned highly energetic because of adoption and was only ready and waiting for that time when the rebound could start. The recovery detonates lofty upwards just like a thunderstorm updraft.
However, at press time, bitcoin is trading at $3,832.56 (-5.53%). It has plunged deeply from over $4,000 where it was standing on January 9, according to coinmarketcap data.
It’s not only Bitcoin that is having it rough, other significant cryptos such as Ethereum, Ripple, Bitcoin Cash, EOS, Stellar, Litecoin have plunged as well. In other words, all the top 7 cryptocurrencies have abruptly declined in price.
Thanks to TRON (is trading at $0.02933) in 8th rank, Tether ($1.02) in 9th rank, USD Coin ($1.01) in 19th rank, TrueUSD ($1.01) in 27th rank, Gemini Dollar ($1.00) in 50th rank, Dai ($1.02) in 58th rank, Status ($0.020488) in 59th rank, Aurora ($0.010855) in 60th rank, ODEM ($0.297465) in 63rd rank and Maximine Coin ($0.010031) in the 81st rank, for not collapsing. They are the only cryptos among the world’s top 100 cryptocurrencies that have not declined in price.