Main Reasons Why Bitcoin Prices Will Rise Again
Main Reasons Why Bitcoin Prices Will Rise Again, If you’ve read media articles about Cryptocurrency and blockchain in the past few months, you might be very pessimistic about the future of Cryptocurrency.
For some people, criticism of blockchain technology has become a trend. Fortunately, these materials are rarely based on serious facts. However, this kind of “open-minded” criticism always makes the author quickly popular, thus gaining some kind of “expert” status.
Today I want to eliminate all pessimistic predictions and let everyone have a realistic understanding of the current market situation.
What I want to say is that I will not quote the conclusions of dozens of pseudo-analysts who frantically claim that bitcoin prices will reach $200,000 by the end of 2019. I believe that the prediction of the future of the market should be based on facts, based on basic economic laws, rather than on the need for purely emotional needs or popular trends.
The current price of Bitcoin is around $3,600. Yes, this is close to the bottom stage. But what happens next? Simple and clear: the arrival of the bull market. I think the reason Bitcoin will start to rise in 2019 is:
1. Bitcoin technical analysis
Let’s analyze the changes in bitcoin prices over the past few months. The increase in trading volume and the increase in trading positions in December 2018 indicate that the market has bottomed out, with the bottom at $3,200 on December 15. Bitcoin prices have fallen to a low point and the uptrend begins again. In addition, the volume of transactions increased significantly, resulting in increased volatility. These factors may cause a large number of buyers/investors to enter the field. This in turn will lead to a rise in bitcoin prices.
In addition, on the daily chart, we can also see the typical fake breakthrough mode, which is a typical signal that the market will go up.
Of course, rational investors should not make their own ideas based entirely on technical analysis. It should consider the overall economic situation, the technological potential behind the assets, and the fundamentals of many other factors that need to be analyzed together. Let’s continue to look at the next point.
2. Historical examples
A breakthrough new technology suddenly popped up. Unfortunately, at the outset, its full potential only had a significant impact on a small “technical home” community, which was initially fully supported by these people.
Then, gradually it became more and more popular. Companies and entrepreneurs are beginning to focus on the opportunities this technology brings. More and more people are starting to invest. To some extent, interest in this technology has reached a critical level. The mass media began to report it all day, and everyone was very interested. Any company that pays attention to this technology in some way has begun to attract large amounts of investors. Even if there is a specific technical term in the company name, it is enough to cause a sensation and increase the value of the company.
It goes to a certain point in this direction, and then it seems that the story is over. The hype has passed. The bubble broke. The prices of all assets related to the technology have been reduced to a minimum.