Over the past month, bitcoin has entered something of a bearish state, and has been struggling heavily. The currency initially reached the $12,000 line in August and had most traders excited for the future. Sadly, it looks like the currency has hit something of a snag ever since, and ultimately lost more than $2,000 from that price. While the currency has recovered somewhat and is now trading for about $10,700, this figure isn’t quite what traders had in mind, and we all know bitcoin could be doing better.
Bitcoin Could Move Up Real Soon
Well, according to Abra CEO Bill Barhydt, stronger days are about to arrive. The digital wallet operator recently posted several messages on Twitter, explaining that he was more excited about bitcoin than he’s ever been largely due to several “technical and macro factors.”
In a tweet, he states:
I’ve never been this excited about the potential of #bitcoin for significant price appreciation in the short term (less than an 18-month time frame).
One thing to note is that bitcoin and September don’t always get along. Historically speaking, the month has always been relatively bearish for the world’s number one cryptocurrency by market cap, and it’s not uncommon for the currency to lose big chunks off its price during the ninth month of the year.
However, what’s good about this is that while September is often bearish, it doesn’t always boast lasting conditions. Thus, just because the month doesn’t sit well with bitcoin’s agenda, the currency isn’t likely to follow any bearish patterns into the fourth quarter.
In addition, volatility has reached a new low according to Barhydt, who commented in another tweet:
Bitcoin has been less volatile than many stocks this year, while its price has appreciated over 25 percent in 2020 alone.
For the most part, this appears to be correct. The currency initially began the year in the high $6,000 range, but eventually saw itself trading for $3,000 more the following month. By March, however, the asset had taken a nasty turn and fallen into the high $3,000 range given the spread of the coronavirus pandemic and the effects it had on global financial markets, but this didn’t last long either, and the currency took only two months to revert back to its bullish ways, eventually hitting $10K again.
Institutions Are Much More Active
Finally, Barhydt mentioned in an online message:
Long term price chart is showing a super bullish descending triangle (continuation) pattern off the Jan 2018 highs… Even a small increase in the holder base would cause significant price appreciation.
He later mentioned that the institutional presence in the bitcoin space is growing like there’s no tomorrow, and that the companies and professional players that are active today were not there three or even two years ago, which means bitcoin’s reputation has swelled significantly.
Source: Read Full Article