BITCOIN: Bull Run or Bull Trap?
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If there is only one reality in the cryptosphere, it is that one should expect drama and heartbreaks as normal. In short, everything and anything, it would seem, is possible because of the erratic nature of the market.
Appearing more dangerous than the weather, the crypto market defiles logic in most cases. When you think that prices will go up, they come crashing down. And when you think that prices will crash, they keep going up like a cat with nine lives.
At the peak of bitcoin's glory in the December of 2017, a lot of bitcoin bulls predicted $50k as the next target. Unfortunately, we found ourselves in the mud below $4k. That was over 80% decline from the apogee.
Nevertheless, the past few days have seen what seems to be a light at the end of the long and tortuous tunnel of the bear market. Nearly all the top 10 coins have smashed the record.
Bitcoin, for instance, has surmounted the $5k hurdle and seems to be marching to $6k. Bitcoin cash and EOS are now up by nearly 100% from where they were just a few weeks ago. And the testimonies continue for several other cryptos.
This brings me to an important question, has the bull run begun or this is just another bull trap to entice investors and leave them stranded? Well, I personally believe, from key indicators, that the bull run has started. I hold this view for the following reasons:
Trading Volume: The trading volume of Bitcoin and other major altcoins has continued to rise exponentially in the past few weeks. This only goes to show that new money is coming into the system. Of course, that should drive prices up.
Media Sentiment: We cannot objectively ignore the role of the media in the patronage of Bitcoin. Presently, the media seems to be positive about Bitcoin, to the extent that, sometimes last week, it dominated Google's global trends for days. This has always been one of the preconditions for a bull run.
Technical Analysis: While I am not a fan of many of the bogus technical analysis out there on crypto's future, I believe that no one should ignore the fact that the chart of Bitcoin in 2017 is identical with the one of 2019.
Commonsensically, one is persuaded to believe that history will repeat itself and the bull run of 2017 is underway.
Sharp Positive Market Movements: The momentum we saw a few days ago is not to be taken for granted, if you ask me. The sharp movement of Bitcoin Cash and Bitcoin itself shows that a bull run is imminent. And that should take us to a new all-time high by the middle of 2020.
Conclusion
The market sentiments are getting even more favourable by the day and many new people are hearing about bitcoin while the docile investors are returning. I have reasons to believe that a bull run has begun, one that will usher bitcoin into another era of glory and greatness.
Images were sourced from Pixabay
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