Is the Bitcoin Bull Run About to Start?
Bullish arguments seem to be gaining the upper hand.
|Sylvain Saurel||Aug 3|| 3|
Bitcoin is attacking August 2020 in the best possible way. After several weeks of waiting after its third Bitcoin Halving, the Bitcoin price has finally decided to make an important move at the very end of July 2020.
Since the Halving, Bitcoin has been trading in an increasingly restricted range. Throughout July, this range had even narrowed to $9,000 — $9,400.
And then within 48 hours, everything changed.
Between July 26th and 28th, the Bitcoin price rose by almost 20%. Bitcoin went from $9,600 to $11,000. During this upward movement, Bitcoin broke several important resistances: the first one at $9,900.
The second was a much older resistance at $10,500. Bitcoin had been rejected several times from this resistance since the beginning of 2020.
Once this $10,500 resistance was broken, Bitcoin successfully broke the $11,000 mark, a price that had not been reached since August 2019. Within 48 hours, sentiment in the market went from fear to extreme greed.
The $11,400 was reached in the aftermath, and many saw Bitcoin on its way to start its famous Bull Run.
And then, the Bitcoin price finally stabilized all week around $11K. The market needed to stall after the sharp rise it had just experienced. Those who understood that Bitcoin’s targets are much higher than the $11K price could take a step back.
There are more and more signals suggesting the start of the Bitcoin Bull Run
By seeing the bigger picture, we can see that there are more and more Bullish signals for Bitcoin :
A monthly close price above $11K (for July 2020) that had not been seen since June 2019 when the Bitcoin price had approached $14K.
The number of days where HODLing Bitcoin has been a profitable strategy now exceeds 98%.
93% of all addresses that own Bitcoin are now in profits.
More than 63% of the total number of Bitcoins in circulation has not moved for at least 1 year, implying that we are in a phase of big accumulation.
I’ll stop there, but the number of extremely positive signals is quite large right now.
Concerning the current accumulation phase, we can add that the last time such a level was reached was at the beginning of 2019. Bitcoin price was then $4K, and it was going to enter a very strong increase phase bringing its price to $14K at the end of June 2019.
We could be in this phase which would imply that we would be at the beginning of a great Bull Run for Bitcoin.
In addition to these technical elements, there is much major news that has been added in the last few weeks:
Historical opponents of Bitcoin are coming to the fore. Bitcoin is here to stay. PayPal will soon offer to buy/sell Bitcoin to its 325 million users.
Visa working with Coinbase to “provide a bridge between digital currencies and our existing global network of 61 million merchants.”
The U.S. banking regulator has just authorized U.S. banks to hold Bitcoin for its customers. While I remain convinced that the banks cannot be part of the solution because they are at the heart of the problem with the current system, this announcement is extremely bullish for Bitcoin.
A U.S. federal court recently ruled that Bitcoin is a form of money under the Washington D.C., Money Transmitters Act (MTA).
All this pleads in favor of the start of the famous Bull Run.
Bitcoin price has just filled the oldest CME gap still open which was at $11,700. Bitcoin price reached $11,970 before being strongly rejected towards $11K. At the time of writing, the Bitcoin price has again stabilized around $11K waiting for a move up to $12K, or a move down.
A CME gap remains open at $9,600
Indeed, there is still a CME gap at $9,600 which formed last weekend when Bitcoin price rose sharply. While some may not believe in the importance of these CME gaps, it must be admitted that they are filled in more than 95% of the cases.
A correction to $9,600 is therefore a credible assumption.
Besides, there has been a noticeable increase in the sending of Bitcoins to trading platforms by Bitcoin miners over the last few days. This often indicates that miners may be willing to sell their Bitcoins to take advantage of a spike in its price.
Such a massive selling could lead to a correction in the Bitcoin price with a return to the $9,600 level.
The next few days will, therefore, be extremely interesting to follow for the Bitcoin price. I think that the long-awaited Bull Run will only start after a correction and a return to $9K.
I could be wrong, and that would be so much the better, but in any case, you have to be extremely careful not to give in to the FOMO feeling that some people are trying to instill in the Bitcoin market.
Bitcoin’s goals are extremely high for the future, and you have to keep your emotions under control because the hardest part will start in the coming months when the Bitcoin price will start to climb towards $50K, and even more after that.
Define your strategy for Bitcoin, and stick to it
So I advise you to define a strategy with Bitcoin and stick to it no matter what happens.
Mine is quite simple, and it is the one that a majority of Bitcoiners follow. Here it is:
Buy Bitcoin automatically with a Dollar-Cost Averaging (DCA) approach. Many applications exist for this.
Program the automatic sending of these Bitcoins to your hardware wallet using one of the applications you will buy.
HODL Bitcoin no matter what.
Iterate from step 1.
This strategy consists of being a Bitcoin HODLER. This will allow you to enjoy Bitcoin to the fullest while remaining Zen and having the time to constantly deepen your knowledge to take the measure of the Bitcoin revolution.
Until we know more about what Bitcoin will be doing in the coming days, I invite you to check out a few articles I wrote recently:
Bitcoin Gives Everyone an Equal Opportunity, and That’s Truly Revolutionary: Bitcoin protects all its users.
Like Bitcoin, Voice Will Be Essential to Preserve Future Freedom of Ideas: You must fight to preserve this freedom.
Six Essential Things to Succeed That You Always Overlook When You Are in Your 20s: A few pieces of advice to move faster in the right direction.
While Gold Is Reserved to the 1%, Bitcoin Is the Real Hedge Against Uncertainty for the People: Bitcoin is accessible to all.