Perhaps never before have members of the cryptocurrency community wished for a Bitcoin bull run as much as they do now. Four times in less than four weeks, the price of a single Bitcoin (BTC) surpassed the significant $20,000 mark.
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When compared to the excruciatingly terrible bear market situation this year, this psychological factor brings with it the promise of a prospective rally. Also, it seems like the Bitcoin trading community is in a temporary no-buy zone at the moment.
When Might We See A Bitcoin Price Increase?
The buying trend of Bitcoin shows that the price drop did not trigger enough purchases. Crypto Quant’s on-chain data shows that there has been a decrease in trading volume due to speculative purchases. This occurs when the market decline has lasted longer than expected. The weekly to monthly percentage change in Bitcoin purchases exhibits no discernible trend.
With Bitcoin’s price set to soar, this could be a great time to invest.
Short-term buying slows when the market declines further.
Do We Expect Another Fall?
However, there is always the risk that the price of Bitcoin (BTC) will fall even lower. A number of cryptocurrency holders could sell out of panic if this happens. It’s possible that this will dampen the enthusiasm of potential new buyers for quick gains. Even said, the market is hoping that this scenario does not come to fruition, since current market signs suggest that the bottom has already been reached. Therefore, a Bitcoin price increase from here is not completely out of the question.
According to data compiled by CoinMarketCap, the current Bitcoin price is $20,172.03. This is an increase of 1.29% over the previous 24 hour period. A weekly increase of 6.23% is a positive indicator of a possible bull market. In the meantime, the crypto market faces headwinds from the macroeconomic outlook. Bitcoin may not follow the same trends as more conventional assets, but this is only a possibility.
Despite the beliefs of some market participants, indications indicate that a severe economic crisis may be on the horizon. Recently, a UN agency issued a warning to numerous central banks, including the U.S. Federal Reserve, about the possibility of a recession.
Source: Google Trend