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What will happen to bitcoin in the future? From Bullish to Bearish

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Crypto as Leading Industry in 2021

There is talk on all sides about the onset of a bearish trend — a period during which the prices of digital assets are constantly falling. A crisis is predicted as Bitcoin is once again being buried. If the pessimistic predictions are correct, this time the bull market ended too quickly. Most experts were sure it would last until at least the fall or winter.

But maybe the pessimists were too hasty, and we are not seeing a trend change, but only one of the predicted corrections. In favor of this is the buying back of assets on the drawdown by institutional and large investors. A lot of technical indicators and forecasting models for the price of BTC.

What will happen to bitcoin in the future? From Bullish to Bearish

Those who support a correction now have an opportunity to inexpensively increase their investments. It is recommended to use exchanges or exchangers for this purpose. For those who have never encountered digital assets, it is easier to use https://trastra.com/.

Why has the crypto market fallen?

Bad news for BTC. Bitcoin is a highly volatile asset whose value is highly dependent on the news background. A negative news backdrop caused retail investors to dump assets. This led to the liquidation of a huge number of margin positions. Traders got carried away with leveraged trading and paid the price. At the same time, institutional investors and crypto funds did not sell, but bought bitcoin in the fall. 

Now, not only cryptocurrencies are highly volatile, but also stock market stocks. Securities are falling amid rising inflation. Rising inflation could prompt the U.S. Federal Reserve (the country’s central bank) to tighten monetary policy and raise interest rates. It’s a move that could weaken investors’ willingness to invest in risky assets.

This time, bitcoin has not proven to be a protective asset that hedges against stock market turmoil. The first cryptocurrency is an asset built on new technology. Therefore, investors perceive it as the stock of a technology company. Bitcoin and stock market indexes have been correlated with each other for some time.

What does this indicate about a change in the trend?

The pace and depth of Bitcoin’s decline scare investors the most. After hitting an all-time high of nearly $65,000, the first cryptocurrency is falling in value and has lost more than 40% in that time.

A lot of technical indicators also speak in favor of a bear market. Bitcoin has now fallen below the 21-week moving average (it has been above that line for most of last year) and the Pi Cycle Top indicator. This suggests high selling pressure in the medium term.

What does it say that the market is just in a correction?

The signals in favor of a bear market seem compelling. But there is reason to think that these are false breakdowns and that the crypto market is maintaining an uptrend. This is not the first collapse of the crypto market within this uptrend. 

It is too early to end the bullish trend. Earlier, we detailed the main models of bitcoin price estimation and considered when, according to them and experts’ predictions, BTC will reach its peak in this uptrend.

What will happen to bitcoin in the future? From Bullish to Bearish

Recall that, according to experts, bitcoin could reach a price of $100,000 to $400,000 by the end of this year. The main models of valuation of the first cryptocurrency predict that the uptrend is not far off. That’s why it makes sense to buy BTC at https://trastra.com/coins/buy-ltc-with-euro/ to make sure you don’t miss out on the opportunity to make money. 

Why is the uptrend coming?

After the bullish rally of 2017, the cryptocurrency market has changed a lot. The growth is due to fundamental reasons. The role of big capital has grown. All the infrastructure necessary for it to emerge has emerged. Cryptocurrencies have become part of the financial world. Their use is becoming widespread. 

Without a sharply negative news backdrop, the crypto market may well remain in a long-term uptrend. Once panicked short-term investors run out of bitcoins, the downward pressure will ease and the price will go up.

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