Bitcoin this year has seen a fairly dramatic fall in price going from almost $20,000 at the end of last year to about $6000 this year. This again resurfaced the idea that the Bitcoin was going to crash in price and inevitably lose all value, however such pessimistic view was once again proven wrong. This is because from February until now, the Bitcoin hasn’t entered a long term bear trend, in fact it has been ranging in price bouncing from $6000 to almost $10,000. However recently the range Bitcoin has been tightening which for Price Action usually means either the price will skyrocket or either it will fall further in price. So it begs the question, is the Bitcoin stabilizing or looking to go down further?
Boom or bust?
It’s too early to say for sure but one can expect the Bitcoin to continue ranging in the short and mid term. However there is one interesting development that the bottom of the range bounced higher going from $5800 in June to $6200 in August when it was at its lowest price during these periods. This is an interesting development as this is the first time such a thing has happened on the yearly graph which could suggest the price is making higher highs.
Further developments in crypto are showing that the market competition for decentralized coins may no longer be as intense as Bitcoin is still dominating the market for decentralized coins due to it being safe, self sufficient, not managed by humans, invulnerable and unhackable. However the competition to develop the World’s first large scale accepted cryptocurrency has just intensified as blockchain gains pace all around the World. With Israel looking for ways to create it’s own cryptocurrency based off its current currency. Furthermore in Asia which is a fintech hub, the Government of Hangzhou in China recently allegedly invested $480,000,000 in a $1.6 billion blockchain trust, thus intensifying blockchain research and development.
To conclude the Bitcoin appears to be in an a lot more healthier as blockchain is a globally recognized innovative piece of technology with future use and purpose. Which in turn could explain why another $8 billion has been invested into the Bitcoin and it could also explain why we are potentially seeing new waves of interest in the Bitcoin which has taken the Bitcoin out of its downtrend and into a range market with the possibility of a swing up increasing as time goes on.