Bitcoin May Be Poised For the Next Bullish Breakout
As market prices finally break free from months of stagnancy, many believe it’s a sign of good things to come.
Good investing practices have always seemed to have some amount of witchcraft involved in them. As most seasoned investors that consistently turn profits seem capable of reading markets in the same way that charlatans read palms. Speculation, by definition on, is just really well-informed guesswork after all. But guesswork that often pays off thanks to countless hours spent pouring over market history, ambiguous secondary market performance, political and social trends, as well as good old-fashioned bitcoin news.
Taking each fleck of information with several grains of salt, and slowly compiling tertiary data into something that could reasonably be applied to the future of crypto. While there are a scant few exchange platforms that help guide new investors through these treacherous waters, Bitvavo arguably among the best; there’s just no real substitute for hard work and extensive research when it comes to predicting future trends.
Which is why so many bitcoin and cryptocurrency investors closely follow the twitter accounts and YouTube channels of some of the world’s most savvy crypto investors. Hoping to get a finger on the pulse of the market just before anyone else does.
Return of the Prodigal Volatility
Rumblings have been heard throughout the expert crypto communities regarding the latest breakthrough in bitcoin pricing- as the coin finally broke past its $10,500 restrictive band on the 27th of July. With many investors taking this as a sign that a new bullish outlook may be justifiably taken by anyone interested in getting into the market. As many time-tested oscillators and predictive models are suggesting that this may be the brink of a prolonged upward stroke in valuation.
One of the major flags that have investors running to their respective exchanges is the subtle return of the price volatility that bitcoin has long been famous for, but recently lacking. As the coin held fast around $9k for well over four weeks, the expected dips and peaks were nowhere to be seen, for perhaps the longest period since the massive bitcoin adoption in 2017. In many different markets, long periods of low volatility often signal that big moves are ahead, predicting bear or bull is the hard part.
However, it seems that bitcoin has come out smelling of roses and preparing for a big bull run after the price spent a good while in a more stable arena. Holding fast to $10.5k and above for several days.
DeFi Captures Attention
As blockchain technologies and decentralized financial firms begins to pique the interest of investors, it’s also drawing the eyes of large corporations, governments, and traditional financial sectors. There has also been discussion of beginning to delve into trading bitcoin derivatives, bringing back a renewed interest of seasoned investors that the market may have lost. Creating a greater number of investment opportunities that closely resemble historically favorable options.
As interest in tangential markets increases, many investors begin to store gain in popular cryptos, like bitcoin and Ethereum, continuing to propel market participation and adoption, which in turn drives value. Price rallies are generally believed to be more reliable and sustaining when they are accompanied by an increase in market adoption.
Risk-Tolerance Reaches New Highs As World Crumbles
As people become more accustomed to taking risks in their everyday lives- a habit that is highlighted and propelled by global crises, such as the coronavirus, economic instability, or political unrest- people generally begin to display more risk-tolerant behaviors, spilling over into financial behaviors. A risk-on market has been noted as more investors begin to move money and trade regularly, despite the fall of many purported “safe-haven” assets, such as oil, fiat, and US securities.
It’s safe to say that just interacting with everyday life at the present time is a fairly risk-tolerant practice- specifically when considering the largely unstable purview of the future. As stimulus packages have been released all over the globe, people seem keen to invest this money in any way they can, as to create a cushion for a worst-case scenario future. Particularly as global trade relations between heavy hitters of the worlds’ economy begin to tread thin lines of comradery. As showcased by tensions rising between the US and China as well as the UK and EU.
The novel coronavirus has also proven to be wildly disruptive to normal habits regarding the use and exchange of fiat currencies. Many countries are pushing citizens to consider contactless, or card payments in favor of cash- as notes have been closely associated with viral transmission. This has also inadvertently caused a coin shortage in the US, among others. With fewer people using fiat, less of it is in circulation, resulting in a noticeable deficit in the availability of coins for payment. Further driving home, the desire to become literate in fiat-alternative currency systems.