Is Bitcoin Entering a Bull Market?
Bitcoin may be heading into a new bull market after testing lower support earlier this month. November is a historically volatile month for cryptocurrency’s leading asset.
With that in mind, December tends to see BTC bounce away from range lows back toward key resistance levels. The holidays tend to treat BTC well in terms of market action, so perhaps this year will be no different.
In 2017, after a summer and fall spent dropping to new lows or ranging sideways, Bitcoin, along with the rest of the market vaulted to unparalleled heights by December.
The following year, the lead up to December was largely similar. However, the major difference was in a late-November moment of extreme capitulation that led to some of the best month-on-month gains in BTC history.
All of which leads us to where we are today. Spring 2019 into early summer saw Bitcoin rise like a phoenix from the ashes of a 19-month long bear market. Late summer and autumn took us back below $10,000, but again, here we are in December after a moment of capitulation.
What’s the major difference this time around? In previous years, Bitcoin didn’t have a history-making event on the horizon. This time it does.
The Having and Have Nots
In May of next year, the Bitcoin having is occurring. That means new BTC supply is on the brink of being cut in half, which could signal much higher prices than ever before.
With such an important event just months away, it’s only a matter of time before investors from every corner of the globe pour wealth into BTC. Positioning assets ahead of the event is key to making sure that the having doesn’t pass you by – something professional investors know very well.
What is happening now is akin to a standoff. Everyone knows that something has to give, but who will be the first to make the move?
Bitcoin on the Rise
Earlier today, Bloomberg Crypto signaled that BTC may be ready to climb back above $8,000. With key resistance surrounding the $7,700 area, a close above $7,800 would make Bloomberg’s call all the more likely.
Traders need confirmation of a trend before jumping back in. A strong close above $7,800 is one step on the way to confirmation, and is a key indicator that health is returning to the market.
Of course, much of what is happening has to do with the Chinese government’s stance toward cryptocurrency. Should the Chinese government let loose one word signaling a softening of their stance toward digital currency, the markets would likely let loose a furious green candle.
Maintain Exposure to Digital Currency
While that is hypothetical conjecture, there is some likelihood to it which makes speculation on that point worth doing. To that end, maintaining exposure to the market, even in this indecisive moment, is important for making sure that one doesn’t miss the move when it comes.
With a variety of important events – most notable the having – coming up for Bitcoin, the time to be in position is now.