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The Bitcoin Bullish Trend Continues Undeterred

Bullish Trend

Bitcoin, the original cryptocurrency and the blueprint for all the altcoins that followed it experienced quite a difficult period through the course of 2022, with prices dropping by over 70% in a few months. With the added trouble of dealing with the collapse of several exchanges, the digital asset environment struggled to regain its strength and return to previous levels. Most investors were confident that this would occur sooner or later and that it was only a matter of time.

Starting from the beginning of January, they were proven right, as prices began to climb slowly. Binance, the largest exchange platform in the world, began recording increased engagement from investors looking to buy Bitcoin to add to their list of holdings. This is mainly in the context of the still-evolving bullish trend that is expected to take prices further than they’ve ever been in Bitcoin history.

$49k 

The Bitcoin price has climbed by over 80% since the beginning of the year. There were some losses throughout this process, and investors expect even more in the future, but it’s unlikely that the drops will be so drastic as to affect the overall price movements. Many expect BTC to regain its 2021 all-time high value shortly, perhaps next year or in 2025. The fact that the next halving event is drawing near has made traders even more optimistic since, historically, values grow around this time.

A new optimistic scenario takes that further, indicating that the current price might shortly climb by over 60%, reaching an overall market capitalization level of $960 billion and a price point of nearly $49,500. While this would be absolutely spectacular for the crypto environment, it’s more likely that the market cap will fluctuate somewhere between $600 and $700 billion, while the Bitcoin price will navigate the area between $30 and $36k, at least for the foreseeable future.

Gaining momentum 

One of the things that has kept investors on their toes is the fact the price still doesn’t appear stable. Bitcoin cannot hold the momentum and stay within specific values, as it still doesn’t have sufficient support. Most investors advise those looking to trade during this time to remain cautious until there’s consistent evidence that Bitcoin can sustain at and abov4 $32,000. Achieving this stabilizing level will make investors more confident and allow fluctuations to become mellower.

Current research indicates that there’s significant resistance for Bitcoin at the $32k mark, even though the market continues to progress. It’s important to remember that growth might not always be linear and that it’ll take a while for Bitcoin to return to its previous levels. However, several positive news stories regarding cryptocurrencies over the past week have managed to keep the coin afloat.

ETF announcements, support from presidential candidate Kennedy, who claimed to use BTC, along with other assets, to back the US dollar if he is elected president, as well as the legal victory of a token, have all served the market well. However, they haven’t been enough to give Bitcoin the boost it requires. While most investors are confident of the coin’s potential, most believe it’s important to remain cautious above $30k, as all gains will likely melt away as fast as they appear. Others believe that a reversion to the mid-$20,000 area is still possible as well.

Stalling 

The correlation between cryptocurrencies and the larger economic landscape has been consistently dismissed over the years. But as digital assets become more important for traders and investors, it is perhaps time to put their importance into perspective. The fact that Bitcoin might be stalling somewhere around the $30,000 range might signal more considerable economic troubles. Some analysts believe that the fact Bitcoin doesn’t show imminent signs of growth can be because a deflationary trend within the economy is underway.

The fact that BTC might have to drop quite significantly before experiencing considerable growth has also been addressed. Looking at it from this perspective, all the recent surges brought on by the added ETF functionality and the positive news have only been achieved to spark short-lived spikes. Some have compared it to the events of December 2017, when Bitcoin futures first emerged and created a temporary craze.

However, it’s also essential to consider the fact economists believe that the second half of 2023 might signal the beginning of a recession, so the fact that Bitcoin might just mirror the movements of the larger marketplace is probably not far off. If this is true, it suggests that digital assets are far more critical for traditional finances than previously believed.

Miner Projects 

The cryptocurrency ecosystem is well-known for its innovative technologies, owing to the developments it introduced over the years. One of the latest is the emergence of Ordinals, similar to the non-fungible tokens of the Ethereum network but located on the Bitcoin blockchain. Now, a Canadian mining company wants to use these tokens as part of an artificial intelligence initiative they’ve been working on. Their aim is to add generative art to the BTC blockchain through inscriptions. Ethereum-powered mining rigs will be used to carry out the tasks.

The firm’s CEO has described the project as an exercise in technical prowess and abilities. The emergence of Ordinals has provided the business with a brand-new use case for their data-center-grade, which has been used in altcoin mining. The previous use case was channeled towards Ethereum. However, it became obsolete immediately after the blockchain switched its protocol from proof-of-work to proof-of-stake.

Although the interest in Ordinals has somewhat cooled down recently, there’s still a lot of hype surrounding BRC-20. These tokens are created on top of Bitcoin through the use of Ordinals, so the marketplace is still interested in them.

The bottom line 

The Bitcoin market is still recovering, and it’ll be a while until prices return to their 2021 levels. Until then, investors must remain attentive to the market changes, as sudden fluctuations could impact their portfolios. Just as ever, common sense remains one of the fundamental principles of trading. Careful planning is the only way to grow your holdings. 

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