Next Bitcoin Bull Run in the Making?

The trend since last week’s bearish signals have moved to a potential uptrend. Is this a bubble or a  trend based reality for the Bitcoin?

Going by the recent trend in prices, Bitcoin seems to be waking up. Until last week, it kept dropping against the USD. Analysts were looking at $6,000 as a support level. The market was quite bearish with low volumes. The hope was if it keeps on inching slowly and breaks this resistance trend line, it could run loose like a bull. The chart shows this well.

Trade analysts such as ONG Jun Hao, explains it in his post as below-

BTC is currently trading at levels of $6,521. While there are glorious predictions of it touching $100,000 in the next 10 years – a feat unheard of – the focus on the near month would be most beneficial.

Where will the Bitcoin Gain come from?

While the use cases of blockchain are still being discovered, the speed of bitcoin processing has not been upto the mark where it has been implemented. Stripe – a technology infrastructure company which had been one of the pioneers of implementing payments in bitcoin, had to face backlash from clients on the speed of processing – delayed confirmations, high fees and transactions disconnect with changing exchange values. There are issues in the security of bitcoin storage and processing. Any step towards this will ensure a potential positivity for a market starved for something good. Even regulatory discussions towards bitcoin will give a momentum.

The biggest factor for gain will be Sentiment – As directed by an artificial  intelligence company TIE.io, the largest spurts in BTC/USD have come from the effect of sentiment on social media chatter such as Twitter – this translates into trading sentiment as well.

On the fundamentals side, factors such as scaling, bitcoin demand, adoption transaction and trading activity, hash rate and finally the supply of the coin which is pegged at 21 million.

A bull run will be a combination of favourable news /sentiment for the currency backed by suitable technical indications. To derive those indicators, the price fluctuations will have to be supported by the change in USDT and good behaviour on part of users of bitcoin.