As one of the most popular cryptocurrencies on the market, Bitcoin (BTC) is at the moment trading around $9.333, as pointed out by CoinDesk. As it stands, it appears that the digital asset has broken out of the falling cycle it’s been on for the past weeks, which is a reliable and quite bullish indicator for potential investors.
But, opinions are divided to whether or not Bitcoin will maintain this streak, with some believing that a breakout to $11,700 is not out of the question. While Bitcoin might be able to pass this point, we can expect that it will encounter some resistance, not being able to move straight past the $12,000 position that easily.
A potential reason for Bitcoin regaining its momentum has to do with the bearish voices which have faded out, some even expressing their acceptance of the once-slandered crypto. In fact, the entire blockchain industry has seen quite a bit of traction in the past months, and cryptos such as Bitcoin as continually finding potential investors and buyers in the higher echelons of banking and finance.
Even traditional investors who are not knowledgeable about ICOs, altcoins, or blockchain technology now seem eager to take a leap of faith and invest in digital assets such as Bitcoin, which is possibly the first altcoin they purchase. But, this is a trend which has been around for a couple of years, where investors are looking to buy Bitcoin before moving on to other cryptos.
Taking the context of last year the crypto market witnessed a massive exchange of Bitcoin from stronger and more firm hands to weaker ones, and that isn’t yet over. There are some investors which are not shy about their plans of hoarding Bitcoins for the next decade, similar to buying gold as a commodity and waiting for its value to increase.
Twitter is an excellent place for seeing the crypto community and the way it interacts with the virtual asset, as most players will try to purchase it at the lowest price possible, and once they see a play possible, sell it off.
But, there is also the other scenario, a reality for investors who believed in the altcoin and bought near the top, only to later sell it at a considerable loss. Understandably, few of these investors will ever consider purchasing or trading Bitcoin again, unless the price goes down significantly.
The same is true for investors who are waiting for the perfect moment, which is more of a fantasy than a real-life scenario. This means that they will either end up buying at a high price due to impatience, or they will completely miss out.
When we look at Bitcoin, it’s impossible not to at least imagine a 2014-style scenario in which Bitcoin’s value will significantly drop, and that’s understandable since market fluctuations are a common thing within the crypto ecosystem.
There is plenty of fear of go around, along with uncertainty, anxiety, and anger, all toppled by the bearish news that some financial advisors and gurus are making. Particularly for first-time buyers, knowing when to give up and when to keep at it can be tricky.
This problem makes it easier for smart money to shake out these weaker hands by manipulating the price, in the short-term. This scenario would lead people into thinking that Bitcoin will soon come to an end, and that so will all other cryptocurrencies. Then, once they get rid of all their Bitcoin, investors might as well start pulling out their hair, since prices would start rising again. But, the only difference is that it will happen without any of them on-board.