10 reasons for a Bitcoin bull run
Since the beginning of August, bitcoin prices have been in a consolidation phase, from below $10,000 to the upper end of the $11,000 range at the end of July. But the two-week hiatus now appears to have ended. After trading at $11,800 at the start of the day, bitcoin broke through the $12,000 barrier and climbed to $12,467. As of this writing, bitcoin was trading at $12,256 to the dollar. Cryptographic market sentiment has been extremely bullish after bitcoin breached the $12,000 barrier yesterday. Analysts have gathered more than a dozen reasons why bitcoin’s bull market will continue.
Vortex argues that the Bitcoin hash rate has reached a new all-time high as the price of BTC increases and mining operators use more efficient machines. There is a widespread view in the crypto-community that the price of BTC follows the hash rate as this is a general indication of a healthy environment for Bitcoin mining. The hash rate indicates that miners are investing in and using new equipment, possibly in anticipation of a rising Bitcoin price.
As analyst David Puell noted yesterday, the USD 12,000 mark may be a last bastion of the bears. Furthermore, if BTC could break the June 2019 high of $13,900, there would not be much resistance left towards the all-time high of around $20,000, which could stop a massive bull run. With this in mind, analyst “Vortex” yesterday presented four reasons via Twitter why Bitcoin is about to initiate the next bull run.
The analyst’s third bullish argument is
that 63% of all Bitcoin (BTC) has not been moved for a year or more. The last
time this figure was so high was at the beginning of the last bull run, which
lasted from 2015 to 2017 and took the Bitcoin price to $20,000.
According to the analyst, the adoption of
SegWit (Segregated Witness), a scaling technology for Bitcoin, which was implemented
on August 23, 2017, has reached a new all-time high as cryptocurrency exchanges
increasingly integrate SegWit. SegWit was introduced to mitigate the block size
limit by reducing the size of a transaction to allow more users to send Bitcoin
at a lower cost.
Furthermore, Google’s search volume for
Bitcoin also shows a growing interest in Bitcoin. Although the search volume is
still far from the level at the end of 2017/beginning of 2018, it shows an
In addition to the reasons presented by
Vortex, there are many other reasons for optimism. As Digital Asset Manager at
Capriole Investments, Charles Edwards, recently stated on Twitter, “Gold is in
control of Bitcoin right now and it’s bullish“. Edwards shared the chart below:
He also wrote a list of other reasons for a
rising Bitcoin price a few days ago. These include Dave Portnoy’s entry into
the Bitcoin market, the Fed’s investigation of a digital dollar, the
establishment of a support/resistance flip in the gold price, a 26% increase in
the market capitalization of Tether and a price structure that indicates an
Author : Jake Simmons