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27% true Bitcoin, Oh no! (or Why is the time to buy Bitcoin)


With Bitcoin down more than 25%, we are sure that not a few Bitcoin holders (CRYPTO: BTC) wonder if this is the beginning of the end. What we want to point out is that, historically, every time Bitcoin corrects, it always bounces back

April 24, 2021

4 minutes of reading

This story originally appeared on MarketBeat

Time to start buying Bitcoin Again

With Bitcoin down more than 25%, we are sure that there is no less Bitcoin (CRYPTO: BTC) The holder wonders if this is the beginning of the end. What we want to point out is, historically, every time Bitcoin fixes it there always bounce to make mind bend profits. Even the 2017/2018 boom fueled by Chinese regulatory crackdown, a correction that caused Bitcoin’s price to drop 85% low, bounced back and see since then BTC has risen. how much. About 2060%. That’s not something that deserves your attention. The point we are trying to make is that Bitcoin may fall but it doesn’t. The correction could be deeper but we don’t think so and here are four reasons why.

Four reasons why Bitcoin will bounce back stronger than ever

1) Bitcoin still dominates Cryptocurrencies Even as Bitcoin’s dominance has declined in recent weeks, it remains the top cryptocurrency by market cap. Bitcoin, the original cryptocurrency, is worth about 50% of the $ 1.8 trillion worth of crypto market and will likely hold the # 1 spot for a very long time. Worst of all, we expect the coin to drop to 2nd place or close to the equivalent of Ethereum (CRYPTO: ETH) over time, but we also think that these two ecosystems may coexist. Where Bitcoin is a very simple (relatively speaking) blockchain network with limited functionality, Ethereum is designed to be and be a global financial supercomputer. To put it simply, Bitcoin is digital gold while Ethereum aims to be the infrastructure of the global digital. finance. Regardless, the interest rate on both currencies will rise again and one will support the other.

2) Bitcoin’s hash rate still tends to be higher – The hash rate or amount of computational power available in the Bitcoin network decreases with price action, and that’s not out of the question. The result is that the decline in hash power is consistent with the underlying trend (strong increase) and ready to recover as it once happened whenever the hash power dropped. One reason we expect the rebound is the degree of difficulty. With the hash rate falling too strong, the difficulty of mining a new Bitcoin will decrease and that will attract miners back to the network. The increase in BTC price will also attract Bitcoin miners back to the net. There may be some volatility in this number over the next month or two but by the end of the summer, BTC’s hash power will return to a new high.

3) Scarcity Even with ongoing mining, Bitcoin continues to be more scarce. Not only are BTC lost on a daily basis, they are often burned to create value in other parts of the crypto world. At the last time, there were about 18.7 million Bitcoins in circulation out of a total 21 million Bitcoin that could be mined. Out of them, at least 20% is lost or irrevocable. This means we know where these Bitcoins are, they are in a wallet recorded on the blockchain, but the keys to getting them are lost. There is no way to know where the wallet is, who owns it, or even how to obtain it. We are sure you have heard the stories. Carry-out items, like most items, are scarce, the higher the price.

4) Accept Bitcoin is being rapidly adopted by mainstream financial institutions. It’s built slowly but over the past two quarters, has been at least a dozen large financial institutions such as Morgan Stanley and Goldman Sachs, who have revealed that they are offering crypto services. Along with that is Paypal’s implementation of Bitcoin / Crypto services, incl payments in Bitcoin services to more than 300 million customers and more than 20 million customers as sellers. And then there is Coinbase’s global IP. Coinbase is the leading cryptocurrency exchange in the world, and it’s just getting more and more popular.

Technical outlook: Bitcoin is about to bottom out

Bitcoin price is currently trading at new lows, but within a range that we think will create a bottom. This support range in line with previous lows will create a strong bounce. Price indicators and action suggest the price may drop a bit further but, with stochastic oversold, the recovery could be days if not closer. In the near term, we expect to see BTC flattening out and bottom out between $ 45,000 and $ 50,000 before moving higher. Mid and long term, we see BTC rebound to $ 60,000 levels and break out with more confidence.

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