For over past 24 to 48 hours Bitcoin has stayed between the range of $6,400 to $6,750, showing good consolidative support at around USD 6500. Over past week the coin has been fairly around USD 6500 and hasn’t breached the support significantly even when altcoins have bee volatile around it. This sudden dip in volatility, street sentiments, and technical indicators are giving clear signs of market maturity and makes one believe that a bull run may just be near.
Bitcoin stays strong despite setbacks
Cryptocurrencies generally have been trading lower most of this year due to factors like increased regulatory scrutiny, an uptick in government crackdowns, and fears that the mainstream adoption of digital currencies might take longer than some had anticipated. But if one observes over past 2 months the leading cryptocurrency, Bitcoin has remained pretty much stable despite some hard-hitting negative news flow. Since early August, Bitcoin has remained stable in the $6,300 to $6,800 range, rarely breaking out of the $6,800 resistance level and the support of USD 6300.
Just last month the SEC dismissed requests to list nine cryptocurrency funds, citing continued concerns about manipulation, among other things although bringing them back to reconsideration. As early as last week, The U.S. Securities and Exchange Commission (SEC) has once again postponed a decision on the application for a Bitcoin Exchange Traded Fund (ETF) by VanEck and SolidX. Apart from this last week, the licensed Japanese cryptocurrency exchange Zaif had reported another cryptocurrency theft of worth $60 Mn. The exchange was hacked between 5 PM and 7 PM on September 14. Three types of digital coins — Bitcoin, Bitcoin Cash and Monaco in — were stolen from Zaif’s ‘hot wallets (connected to the networks at all times), according to Nikkei.
These were the kind of news bitcoin would nosedive drastically to but this time the coin has been stable despite setbacks definitely showing signs of stability and maturity. The increase in the stability of Bitcoin has also allowed the market to become less sensitive to hype and specific events.
Experts too believe Bitcoin’s turning stable and is on the horizon of a big rally
A lot of researchers, analysts and investors on the street believe that Bitcoin markets have matured and could be the ground on which the cryptocurrency may see a rise in prices. Last week researchers at Chainalysis came out with a report stating that the Bitcoin market has matured throughout the past nine months. Despite a steep decline in the price of Bitcoin, the majority of investors held on to their investments, minimizing alterations in their positions even during a period of uncertainty and extreme volatility.
There were a few personalities in favor of this as well. ShapeShift CEO Erik Voorhees appeared on CNBC and stated that the bear market of Bitcoin and other major cryptocurrencies is gradually coming to an end.
“I don’t expect it [the bear market] to end soon, although I do think that the rate of collapse has slowed considerably. Generally in these bubbles, after you go through several months of a downtrend, you hang out in a range for a while […] But I think we are done with a majority of the collapse.”
Billionaire investor Mike Novogratz stated that the market has started to demonstrate signs of seller fatigue, as bears have started to become uncomfortable selling cryptocurrencies at such a low price range. Novogratz emphasized that the cryptocurrency market has bottomed out based on various technical indicators.
“I think we put in a low yesterday. Retouched the highs of late last year and the point of acceleration that led to the massive rally/bubble. Markets like to retrace to the breakout. We retraced the whole of the bubble.”
With bitcoin showing no major reaction to positive or negativity newsflow and its consolidation around USD 6500 zones makes most analyst and experts feel this could be the bottom for Bitcoin and a rally could be just around the corner.
Will the predictions of Bitcoin Bull run come true? Do let us know your views on the same.