Ranging Continues as Market Finds Its Footing
It’s beginning to look like we might be able to call the $5000-$5200 range home, but let’s not jump to conclusions, lest we become homeless. Confidence in this range has been expressed by the quick and clean drop we had to $4900 earlier in the week before hopping back up to today’s $5267 level.
Currently, 24-hour trading volume is building for Bitcoin and Ethereum, the top two digital assets in the market, though neither has been able to tap into a progressive move out of range. In the current setup, day-to-day chop is still expected, but if you zoom out and take a wide-lens view, there is lots to be excited about.
Bitcoin is beating yet another bear market that many naysayers predicted would put an end to the currency experiment started a decade ago by Satoshi Nakamoto.
As written by Friedrich Nietzsche well before Bitcoin’s time, “That which does not kill us, makes us stronger.” With each passing day, Bitcoin’s name recognition deepens and a new generation of tech-literate youth grows of age to embrace the digital currency.
The curious openness expressed toward Bitcoin by younger generations bodes well for crypto’s potential to reach a mainstream adoption phase in the coming years. It may not happen tomorrow, but Bitcoin and the rest of crypto can definitely do with a head start to prepare for the spotlight down the road. As the technology matures along with the audience that will eventually embrace it, we might be headed for the perfect storm – a confluence of circumstances that will prove that digital assets really are a multi-trillion dollar asset class.
One clear example of the maturation of blockchain technology is the Bitcoin network’s near ATH daily transaction levels combined with near ATL transaction fee levels. While it may not seem like anything is happening with BTC from a development standpoint, that couldn’t be further from the truth as revealed by blockchain analysis of Bitcoin TXs.
When the late 2017 bull market engaged its thrusters, Bitcoin famously left users with unbelievably long wait times and fees due to record levels of network congestion. It was an event that shook blockchain ecosystem investors as they realized that price was running far ahead of fundamentals.
The extended bear market has cooled prices off considerably (to say the least), giving fundamentals like those just mentioned time to catch up and set the stage for the next bull market. Additionally, the clear signs of accumulation currently in play mean that Bitcoin is not only surviving, but it’s thriving. Given a little more time and an injection of financialization from parties like Bakkt, we believe that now is the moment for taking a serious look at a restful BTC before it revs up again.
Keeping an eye on crypto markets is hard work. The market never sleeps, requiring constant attention and unwavering focus from analysts.
This is not financial advice. I don’t take into account of your personal investment objectives, specific investment goals, specific needs or financial situation and makes no representation and assumes no liability to the accuracy or completeness of the information provided here. The information and publications are not intended to be and do not constitute financial advice, investment advice, trading advice or any other advice or recommendation. Any expression of opinion (which may be subject to change without notice) is personal to the author and the author makes no guarantee of any sort regarding accuracy or completeness of any information or analysis supplied.
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