The start of a Bitcoin bull run?
Bitcoin price reached 6390$ today, continuing the upwards movement since April 2. The current market capitalization of Bitcoin amounts to about 111 billion dollars, with a total daily trading volume of 18.6 billion dollars. The last time when bitcoin price and marketcap were on these levels, it was back in mid November of 2018 around six months ago.
The next most logical step for Bitcoin is to test the next resistance line (image 1) at 6480$. If it breaks above that and maintain it’s value for more than 2 weeks, it will be safer to assume that we really are in the start of a new bull run. If that’s the case, we need to understand what will be different compared to the last bull run.
Today the crypto eco-space is much more ready to accept new people (investors, users), largely to the fact that the infrastructure is much better compared to the end of 2017 when the last bull run happened.
The period of “Hope”?
Many say, that we have passed the “Depression” and “Disbelief” period of the Wall St. Cheat Sheet (image 2) and we are entering in the period of “Hope”. We must not forget that the next halving, from 12.5 btc into 6.25, will happen in roughly one year from now. If we check the graphs to see what happened every time a halving occurred it is clear that the BTC price increased.
But as we also see in the graph below (image 3) even if the price increases in sort term we should have a small correction before the real bull run starts. My honest opinion is that until we have more specific regulations on Bitcoin and cryptocurrencies in general, we won’t see the real bull run.
The future is hard to predict and if wisdom is what we earned the past years we should know that we always need to be cautious and ready, because the Wild West of economy never sleep.
-This article has no intention of giving financial advise.