Is the Bitcoin Price Ready to Rebound?
If you’ve been a Bitcoin investor for the past few years, you’ve survived a wild ride. From humble beginnings, Bitcoin soared to values unimagined by the investment world. From pennies to hundreds and all the way to $21,000, Bitcoin seemed like an unstoppable juggernaut at the end of last year.
Bitcoin didn’t sustain its incredible run from 2017 into 2018. In fact, most of those gains have been erased. Today, Bitcoin’s price is worth exactly what it was in November 2017. This is a drag for all Bitcoin enthusiasts but is the party truly over? Is Bitcoin, you know, dead?
Bitcoin is Not Dead. But What About Bitcoin’s Price?
Bitcoin is a complex technology that performs a simple function. It’s digital money that you can send anywhere without having to pay high fees or ask anyone’s permission. Being so simple, one would think that Bitcoin’s trajectory would be easy to predict. But Bitcoin is trying to change the global financial order, and this mission takes time and risks total failure.
Fortunately, Bitcoin is not failing. Not by a long shot.
Bitcoin is back above the all-important $6000 line. $6000 is a psychological line in the sand. Investors feel that, if this resistance barrier is broken, there’s no limit to how far Bitcoin could fall. At $6000, stop-loss orders around the world kick in, ditching Bitcoin before a potential collapse.
But Bitcoin is proving resilient. After flirting with disaster in the upper $5000s, Bitcoin is back to sustainable levels in the safe low $6000’s. But do we have the possibility of future Bitcoin price growth? We’ll look at this question in terms of two different realities:
1) Bitcoin Price Increases
In this happy timeline, investors realize that Bitcoin’s technology and utility are as secure as ever. They realize that these prices are a true bargain. Everybody jumps in and Bitcoin jumps to new heights, possibly even exceeding its $20,000+ record from last year.
It’s becoming easier to pay with Bitcoin, and global adoption is still on the rise. As institutional money steps into the industry, Bitcoin becomes a must-have asset – truly the new digital gold. The bear market blues are gone forever.
2) Bitcoin Price Continues to Fade
In this timeline, people realize that existing payment channels work faster and more reliably than Bitcoin. Altcoins with more sophisticated tech steal market share from Bitcoin and the King of cryptocurrencies slowly fades into irrelevancy.
So, which is it? We believe that Bitcoin is still the killer app of crypto and that the Bitcoin bulls will return to the market soon. This may be a slow and shambling process. Altcoins may erode Bitcoin dominance. But Bitcoin will stay #1 for at least a few more years, with chances of worldwide penetration as good as ever.
*Information in this article should not be taken as investment advice.