In my previous article "We Are Only 2 Months Before The Top" I gave you all too much hope that this bull run still has a lot of time.
Meanwhile new concerns appeared and it seems that now that we are even closer to the top than I previously thought of. There were four events in just 24 hours that make me concerned we are very near the top, and not months away, but perhaps even weeks.
1) We see some swift action against Cryptocurrencies from governments, banks and financial institutions that are having a traditional view of finance and are unable to change and support progress.
I've read about some banks in a few countries in Europe that decided not to accept deposits in fiat coming from cryptocurrency exchange accounts. This will be a mistake from the banks side for so many reasons, however, it is possible that action will be coordinated and some banks will try to lobby and force governments to regulate against crypto.
Anyway, this probably doesn't mean anything, but a very small event that could affect negatively but not in a large scale for the time being. Maybe many months later there could be collective action against crypto but not in the short term.
2) Then, we have the Turkey ban on cryptocurrency. This from a country that has a destroyed economy and a fiat currency that will soon resemble the Venezuelan Bolivar. What helped Venezuelans was cryptocurrencies, and it was a good move by the government of this nation that didn't ban, as it was something that helped the people escale the terrible results of hyperinflation. The Turkish government instead of supporting its people, tries to support a failing fiat currency, just because they can't lose control of the finance.
Today prices dropped a little and some suggested that it was the Turkish ban that affected Bitcoin's price. In no way was that the reason.
3) Today again, after reading about all these negative news, we have seen a story coming from China about a coal mine explosion in the region of Xinjiang. Miners died in the explosion and many are wounded with some miners being trapped inside the mine and waiting for rescue.
The hash rate of the Bitcoin Network has dropped by 25% which translates to 65 exahash per second lower. This means the Bitcoin blocks take longer to be mined and the next difficulty adjustement will be lower by around 10%. It also creates problems to the Chinese miners of the area that were forced to stop operations until the electricity network for Xinjiang is back under control.
It is also a proof of centralization of Bitcoin mining in not just one country, but by 25% in one location (Xinjiang). Hash rate located in China is more than 60% currently.
4) And finally we have another main red flag we should be considering. Cryptocurrency meme Doge, managed to pull a 180% rise in just 24h and looks that it can do even higher...
Yes, Dogecoin, the meme coin with hundreds of billions of coins circulating and most of them held by just a few wallets of whales, it reached $0.50 price today.
I don't even know what to say about that, if this isn't a major bearish indicator when a meme is now valued at 50 Billion dollars, then the total market cap should be four quadrillion dollars.
Till next time!
