Opinions

Bitcoin Bull Run — A Mirage?

BTC price was to climb after the stability period but it defied expectations

Bitcoin lost $300 in two hours just this past week. Analysts claimed that by comparing the development with historical graphs and models it was a good news and the ending of low volatility period was the best thing to happen. They theorized that the bullish run is just in sights now.

But was it?

BTC Chart
Source: CoinMarketCap

Directional Movement Index is a technical momentum indicator. The indicator helps determine if prices are trending or simply producing panic patterns by comparing moving averages. The index’s ADX line, which determines the strength of a trend, helps investors to determine their investment strategies.

For BTC, it appears to have bottomed and has started an upward curl.

Which essentially means: Upwards momentum.

Bitcoin is still looking to breach the $6,800 mark. All eyes are set now to BTC to see if the momentum carries on till then.

The stability period BTC experienced these last few months could have a positive effect on regulatory authorities and could increase the absorption of BTC in monetary schemes. But for the increase in price, it’s utility has to be increased which is a very difficult obstacle to overcome.

According to a Gallup poll, just 2% of U.S. based investors say they currently own bitcoin, and less than 1% out of them plan to buy it in the near future. Most investors expressed no interest in buying BTC ever, about one in four said that they were intrigued by it but won’t be buying it anytime in near future.

So, without the proper knowledge of this revolutionary technology the utility will suffer and with suffering utility the volatility will always remain a problem.

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Sarim Mehmood

An electrical engineer to be. Sarim is a blockchain & crypto enthusiast and an early investor in ETH and Ethereum based projects. Email: sarim@blockpublisher.com or contact the editor at editor.opinions@blockpublisher.com

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