Greener Days Are Coming – 4 Reasons To Be Optimistic About Bitcoin for the Next Months
The great opportunity is now.
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After quickly falling below the psychological barrier of $30K, the price of Bitcoin has just rebounded to above $32K. However, it is not certain that the price of Bitcoin will climb back up to $40K quickly. Several resistances will have to be broken for this to happen.
The current situation with the price of Bitcoin moving sideways between $29.5K and $34K could continue throughout the summer.
Even so, the fact that the Bitcoin price has held up like this after the $30K mark was lost suggests that the market has already been purged of weak hands over the past few weeks. The remaining players are well aware of the opportunity that a Bitcoin around $30K represents.
Their goal is to accumulate as much BTC as possible in this price range in anticipation of what lies ahead for Bitcoin in the next months. By taking a step back to see the bigger picture, you will be able to understand why greener days are ahead for Bitcoin in the coming months.
In what follows, I highlight the 4 main reasons why I think so.
The Bitcoin network continues to grow
Since the Bitcoin price crash in May 2021, many observers have made the mistake of focusing solely on the price of Bitcoin. This short-sightedness prevents them from seeing the bigger picture.
The only thing these people see is that the price of Bitcoin is currently 50% below its April 2021 All-Time High (ATH) near $65K.
That being said, you must learn to focus on the fundamentals of Bitcoin. These are far more telling of Bitcoin's long-term success than the short-term volatility of its price.
If you make this crucial intellectual effort, you will see that the Bitcoin network continues to grow month after month since the beginning of 2021:
The number of users of the Bitcoin network has reached an ATH in the past month. This number is far more important than the current price of Bitcoin. Bitcoin adoption continues to grow block by block. This is something Bullish for the coming months.
Bitcoin's Hash Rate is already rebounding
China's ban on Bitcoin has caused many miners in several parts of China to shut down their equipment. The Bitcoin Hash Rate has inevitably suffered as a result. This caused a major drop that had some observers unnecessarily worried.
Since then, we have seen the great exodus of Bitcoin mining from China to the West.
What seemed to some to be something ultra-negative for Bitcoin is in fact something extremely Bullish. This ban on Bitcoin mining in China will do two key things:
Better decentralization of the Bitcoin Hash Rate around the world.
A major improvement in the share of electricity from renewable energy sources used by the Bitcoin network.
Two problems used by Bitcoin's opponents to denigrate it will be solved in the process. You can see that the Bitcoin Hash Rate is already rebounding strongly:
The macroeconomic environment remains favorable to Bitcoin
The ultra-aggressive monetary policies pursued by the central banks of the major economies to combat the effects of COVID-19 on the economy have highlighted the benefits of the Bitcoin system more than ever.
Bitcoin brings back to light the virtues of quantitative hardening. This is in contrast to the quantitative easing that the Fed and the European Central Bank have been practicing unreasonably for years.
This possibility given to central banks to print as much fiat money out of thin air as they deem necessary is the original sin of a system that will end up collapsing sooner or later.
While the Fed has been denying the obvious for months, it is finally starting to acknowledge that inflation will be a problem in the months ahead. It has reached 5.4% in June 2021 in America, and for many observers, including the CEO of BlackRock, the problem is systemic.
This inflation will remain at high levels for a long time. This will benefit Bitcoin as a safe haven to protect what you own. More and more investors will come to seize this opportunity in this macroeconomic environment that clearly favors Bitcoin.
On-chain data confirms that the market has already been cleansed of weak hands
Since the beginning of June 2021, a trend has emerged: whales have started accumulating Bitcoin again. Those players who know how to take the long view have realized that the big opportunity with Bitcoin is now.
This trend has even accelerated since early July 2021:
Investors with at least 1,000 BTC added over 96K BTC to their holdings. While the weak hands were selling and hesitating to take advantage of the current opportunity, the whales were buying fear.
The fact that Bitcoin did not see its price collapse after breaking the psychological barrier of $30K is also something that tends to confirm that the market has already been purged of weak hands.
Greener days are therefore expected for Bitcoin in the coming months. It is only a matter of time in my opinion.
Final Thoughts
It is always difficult to know when the bottom has been reached after a Bitcoin price crash like the one we experienced in May 2021. However, there are several indications that greener days are within reach.
The great opportunity with Bitcoin for the next few months is clearly now in my eyes. It's up to you to make up your own mind based on the 4 elements I've just presented. Then you will be able to make the best decision for yourself.
Some reading
For Entrepreneurs — The Netflix Co-Founder Advises You Not To Look for Answers in Books - It is only a tool that will help you, but it will never replace practice.
Boost Your Emotional Well-Being by Applying These 7 Practices Daily - You must do everything possible to protect your emotional well-being.
The Golden Rule You Must Follow if You Want To Become a Great Leader - Not everyone is cut out to be a leader.
Three Things You’ll Never Regret With Bitcoin. Never, 100% Guaranteed.
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