Bearish to Bullish: Cryptocurrency To End Market Downturn?
>> This article is for informational purposes only and is not financial advice. The information does not constitute investment advice or an offer to invest.
The State of The Market
Plummeting values have become the defining trademark of the cryptocurrency market for the past few months, making even the most loyal of HODLers succumb to creeping doubt. Following record value highs in December 2017, cryptocurrency faced the lowest point of the year with declines of over 70% in value recorded. Described by many as the long-awaited crypto market crash, this extended bear market has been pegged by some as the final nail in the coffin for cryptocurrency.
However, it’s not time to dump all those crypto tokens yet. New information and telltale signs have come to light indicating a nearing end to the crypto market slump. Crypto enthusiasts should keep an eye on the following signs to benefit from the impending market upturn.
A New Hope
Bitcoin declined in value by more than 50 percent this year, amidst regulatory crackdowns and repeated rejections of Bitcoin ETFs by the Securities and Exchange Commission, attributed to fraud and market-manipulation fears.
Crypto experts like eToro Senior Market Analyst Matti Greenspan and Civic CEO and co-founder Vinny Lingham have come forward stating that within a few months the cryptocurrency market is set to see increases to higher values, putting the ongoing bear run to an end. Predictions and speculations of a second bull run have also been making the rounds in the media for several weeks, building bullish hype in the crypto community. These predictions are based on several key and identifiable factors giving crypto investors and enthusiasts new hope for their crypto investments.
Back to Bullish
The first factor alluding to a market turnaround and contributing to new hope in the cryptocurrency market are the growing number of transactions currently being recorded per second following a massive decline in transactions seen in the beginning of 2018.
Another aspect piquing interest in a new market upturn is the steady increase in BTC volumes per day. Markets remain extremely volatile but the longer term outlook for Bitcoin continues to be bullish due to continued institutional interest and movement in the space. Bakkt is amongst the projects contributing to this interest in the form of an exchange solution which will provide the necessary infrastructure for regular institutional trading.
The Returning Promise of Cryptocurrency
Technical strategist at Fundstrat Global Advisors Rob Sluymer sees the next few weeks as pivotal for cryptocurrencies across the industry. Institutional partnerships, ground-breaking regulatory frameworks and real-world adoption are all contributing to rejuvenated investor and business interest in the cryptocurrency sector. Institutional organizations working with crypto are amongst those leading the effort in developing new scalability solutions to increase the daily use and user-friendliness of cryptocurrency. Recent data has also highlighted notable cryptocurrency volume increases in South Korea, adding significant movement to the market.
Starbucks is one of the most recent noteworthy adopters of cryptocurrency to follow this example, having teamed up with Microsoft and Bakkt to allow consumer payments in bitcoin and other cryptocurrencies.
Recognizing a Bull Run
A bull run is typically characterized by a 20% rise in value, but due to the rapid nature and volatility of cryptocurrency trading it can be difficult to predict until it has already taken place. There are however some characteristics which could help new investors and traders to identify a nearing bullish trend.
An uptick in Google trends, positive and widely circulated news on a currency (bitcoin in particular) and even an increase in a currency’s Telegram chat activity can be indicative of a coming market uptrend. Investors should also keep an eye on the value impact of increased institutional forces similar to Bakkt which are entering the crypto space.
There are several signs indicating that cryptocurrency is moving into a new bull run and is here to stay, despite still facing scalability issues and regulatory speculations. An increase in transactions recorded per second and general BTC volumes shows promise for a market turnaround to occur soon. Digital currencies are seeing more global adoptions despite volatile values, and places like Switzerland, Malta and the UAE are committing to cryptocurrency implementation and contributing to bullish trend speculations.
— What is your market prediction? Are you turning bullish or staying bearish?
About the Author: Kirill Bensonoff is a serial entrepreneur with multiple exits, blockchain investor and advisor. He’s also the host of the Boston Crypto Meetup, founder of the Boston Blockchain Angels, producer and host of The Exchange with KB podcast and leads the Blockchain + AI Rising Angel.co syndicate. Learn more by visiting www.kirillbensonoff.com and follow him on Twitter @prankstr25.
Disclaimer: Virtual currency is not legal tender, is not backed by the government, and accounts and value balances are not subject to consumer protections. This article is for informational purposes only, and is not financial advice. The information does not constitute investment advice or an offer to invest.
Originally published at news.caviar.io on November 6, 2018.
