Bitcoin [BTC] and cryptocurrency markets are driven by technicals, not fundamentals, says Mati Greenspan

Mati Greenspan, a senior market analyst at eToro, spoke about Bitcoin and expressed his views on what the next year could mean for cryptocurrencies.

In a Cointelegraph interview, Greenspan said that the volatility of Bitcoin during December last year was far more than it is now and that it has increased a bit after Bitcoin had a breakout at the $6,000 level. Referring to that level, Greenspan said:

“Price action has a way of perpetuating and fear starts building up and then people say, it’s because of the Bitcoin Cash hard fork, it’s because of the SEC, it’s because of Tether. All of those stories add to the fear. But really, what we’re seeing is a simple technical breakout to the downside and not a break of the crypto industry, which is very strong at the moment.”

Furthermore, Greenspan said that the action in the cryptocurrency market had been driven by the technicals rather than the fundamentals and that price action is influencing investor sentiment. He added that “investing is a waiting game” and that money in cryptocurrencies or stocks would be made only while waiting.

Since the price of Bitcoin and other cryptocurrencies have fallen down by a massive amount, Greenspan said that institutional investors and experienced players are getting into the market as they believe this is the right time to invest.

Moreover, the eToro analyst, referring to the current bear cycle, said:

“Bitcoin has gone through various boom and bust cycles over the course of its short history and a lot of the time we see bull cycles where we see the market going up by a 1,000%, 10,000% in a single year or even within a few months. And then after that type of growth, you generally need to see a pullback.”