After a major scare a few days ago, many people began to wonder if Bitcoin was indeed going back into winter when Summer is the next expected outcome for it as a cryptocurrency.
However, most people don’t understand the concept of retracement. Once an asset is on the rise, and overheats, it must find a point of a pullback in order to be able to continue its trend.
This often happens especially if the asset is recovering from an opposite trend which it had been going through. Let us consider a few reasons for the avoidance of doubt.
The Institutional Factor
Believe it or not, this particular price rally of the cryptocurrency is actually driven by genuine interest, not by the speculation of the last one.
This can be noted by the recent events in the news. Institutions are finally starting to see if they can also jump on the Bitcoin bus before it becomes too late. And we know how institutions work. They don’t do anything without knowing its value.
So, you can expect that they must have done all the required homework (artificial intelligence and all) before making the decision to make a run for the cryptocurrency. Fundamentally speaking, this points to only one thing: Bitcoin is going to go much higher this year!
Now if you’re a technical analysis buff, you’d notice something between December 17th and the last few days. A trend reversal is already underway.
This goes to show that the bearish trend is finally coming to an end and that we are in for a bull run that may last a while.
If you observe the significant dip in prices, you’d see that prices may dip yet again soon but will most likely have a sharp reversal from the short trend drop.
So, expect a slight but significant bear market in a short space of time before crypto summer finally begins! This, of course, is also to be expected noting that the price correction is something that must itself occur.
Now that the big guns have all gone in to express an interest in cryptocurrencies in general and Bitcoin in particular, we all know for sure that everyone else is bound to follow.
This happens especially when new technology gets on the scene and everyone now decides to get into the game because it “suddenly” becomes useful.
Key institutional brands always have this way of making everyone to toe their lines. This has always happened since the inception of key technologies we enjoy today.
This also proves to be a great and important factor in deciding which technologies get to achieve their full potential and which ones don’t.
The good thing though, is that blockchain technology is one of the fastest-to-be-adopted technologies in the World and this will go a long way in making sure that prices of Bitcoin do remain on the bullish trend. For a while, at least.
So, in answer to the question of the Bitcoin bulls running away, it is highly unlikely! Bitcoin seems to have come to stay. What do you think? Are the Bulls going to remain? Or will the Bears return?
Please let us know in the comments!