Chart for BTC/USD (1M)
Bitcoin (BTC) volatility has now reached record low on major exchanges. The price is preparing for a reversal and risk taking has returned to the market. We have seen most altcoins rally against Bitcoin (BTC) the past 48 hours. This further confirms our view that the trend is about to reverse and Bitcoin (BTC) is going to enter a period of gradual ascend. As we have seen in the past, this is the period where most altcoins rally against Bitcoin (BTC). The same has started to happen this time and the altcoin market confirms it. This means that all those people waiting for Bitcoin (BTC) to make a 5x or 10x moves from here on out to reach a new ATH is not going to happen. Instead, altcoins are going to have their rally first.
It is true that Bitcoin (BTC) today is in a far better position than it has even been. A few years back, we witnessed people calling Bitcoin (BTC) a scam, a gateway to buying drugs and a currency for illegal transactions. Fortunately, all of that has changed completely in the past few years and the only thing people have against Bitcoin (BTC) is now somewhere along the lines of global warming and noise pollution from mining. We can chalk it up as a success considering not a long time ago people were trying hard to bring it down. Governments and banks across the globe were trying to crack down on exchanges, and arrest traders. Today, most of those governments and banks are trying to make Bitcoin (BTC) work.
Of course a lot of people realize by now that cryptocurrencies in general and Bitcoin (BTC) in particular is here to stay. During the correction, people like Jamie Dimon first targeted Bitcoin (BTC) itself but when they received a lot of criticism for that, they started saying, “maybe blockchain is here to stay but Bitcoin (BTC) is not”. The market was down and the sentiment was already against Bitcoin (BTC) so some people bought this idea. We saw some debates around if Ripple (XRP) or Ethereum (ETH) could ultimately replace Bitcoin (BTC) or maybe another cryptocurrency in future may come up to replace all of them. However, the market proved a lot of these people wrong. Even during the correction, investors had the most confidence in Bitcoin (BTC) compared to other cryptocurrencies.
Chart for BTC/USD (1W)
Bitcoin (BTC) has now broken the historical downtrend and is clear to begin a new cycle from here. It may take a while for the price to climb back to where it fell from. However, there is no doubt whatsoever that it is eventually going to happen. The interest in Bitcoin (BTC) is on a steady rise. Investors already fear a stock market collapse and are looking for alternative investments. Bitcoin (BTC) has multiple advantages as a safe haven commodity. It is easier to store and transport, has a limited supply, and can be traded within seconds. The price of Bitcoin (BTC) on exchanges may take some time to appreciate but it is by no means a reflection of the actual value of Bitcoin (BTC) when you consider the heavy volume of trading taking place on OTC markets.
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