If you are an investor, or interested in the Currency Futures Market you might be wondering when would Bitcoin can go for another bull run? We can never tell when exactly the market might react using these movements, but we have a couple of factors that you will need to bear in mind on determining whether or not for bull run.
Bitcoin Price – Market Sentiment
Market Sentiment is Another Important Parameter True bull runs happen when the investor’s tendency is to look on the bright side, and everything seems to go in his or her favor. One possibility could be good news in favor of Bitcoin, strong institutional support or news regarding. regulating cryptocurrencies, among others factors to improve this high volatility trend for the actors interested on cope with it.
Bitcoin Halving
The other major event that is a possible catalyst for a bull run, would be the Bitcoin halving. This event occurs on average once every four years and involves slowing the creation of new Bitcoins. Bitcoin halvings have a history of being followed by volatility and higher prices.
Also, the price of bitcoin is also shaped by both how much supply it takes to generate a certain level interest in buying and supports selling among other mechanisms of demand/supply movements within this market. Due to the decentralized nature of cryptocurrencies such as bitcoin, they are not subject to market speculation in traditional currencies such as USD or Euro. Instead, the value of bitcoin is driven directly by trades happening online at which point it can be exchanged for fiat currencies USD or other cryptocurrencies like Ethereum.
Mining, a process in which new bitcoins are added into the public ledger known as the blockchain, is another key component that determines the value of bitcoin. Using big computers, miners solve difficult mathematical problems and, in return, are paid with newly mined bitcoins. Because Satoshi Nakamoto, an individual or group of pseudonymity, initiated the bitcoin protocol, thereby keeping the overall supply of the currency limited to a maximum of 21 million,. In the years since, other cryptocurrencies have been developed and have picked up speed as alternatives to bitcoin. Examples of these include Ethereum, Litecoin, Ripple, and Dogecoin. All of these altcoins are similarly decentralized digital currencies but possess their own unique features and uses. Traders can buy and sell the coins on various bitcoin exchanges, including Coinbase, Bitstamp, Kraken, and many others. Though volatile and risky, many traders and investors are in pursuit of possible profits to be made within the crypto market. However, one should be aware that there is a regulatory environment which surrounds cryptocurrencies because governments and central banks globally attempt to outline guidelines on the use and trading of digital currencies. Secondly, fraudulent schemes such as Ponzi schemes, money laundering have involved cryptocurrencies. So, caution must be exercised, and a prudent approach followed while trading or investing in bitcoin and other forms of cryptocurrencies.
Market Cycle Analysis
Many analysts are of the view that Bitcoin follows a pattern of up-and-down cycles, with bull runs along at regular intervals. Some experts have attempted to work out when the next bull run could come based on past market cycles. Past performance is no indication of future results, and market cycles are influenced by so many external factors.
Technical Analysis
The technical analysis works on the premise of trying to project future price movements by studying historical charts and patterns. Traders and analysts, therefore, attempt to find reversals and trends through the usage of indicators and other tools. While technical analysis could be useful, it is no doubt not full-proof and, therefore, must be combined with other variables.
Although none can predict the exact timing of the next Bitcoin bull run, the understanding of market sentiment, Bitcoin halving events, market cycles, and technical analysis by investors can help them make out the right timing of investment. Remember, investment in cryptocurrencies involves risks; hence, do your own research and consult the financial advisor before making any decision regarding investments in cryptocurrencies.
