Weiss analyst: Bitcoin or will be back and forth, bringing the best buying opportunities since 2015
And, as in this encrypted world, it could be a big callback. But when it happens, it will be the best bitcoin buying opportunity since 2015.
Historically, the first callback after the bull market began was one of the best times to enter the encryption market.
We saw this in 2012 and 2015, when the bitcoin bull market just started.
For example, in January 2012, after Bitcoin rebounded from the bottom of a few months to $7 each, Bitcoin suffered a 45% correction and fell to around $4.
But this is a springboard for the bull market, which made Bitcoin enter the four-digit field for the first time in history and reached a high of nearly $1,200 in December 2013.
I highlighted the callback in the gray box above. As you can see, after reaching a low of $4, Bitcoin rebounded quickly and the gains never looked back. This is the beginning of the second bull market in the history of Bitcoin.
The same thing happened in 2015. Bitcoin reached a high of $500, but after reaching a high in early November, it fell 40% to $300 seven days later!
In the place marked in the picture, as in 2012, shortly after the first callback, a super bull market – the third bull market in the history of bitcoin – followed. The bull market continued until December 2017, when Bitcoin hit a record high of nearly $20,000.
How do we know that this history may repeat itself? No one can confirm. But the fundamentals of Bitcoin have grown stronger over the past 12 months:
1. Bitcoin usage is near its all-time high, with 24-hour trading volume at its highest level since late 2017. Recently, it reached a high of 450,000 transactions a day, the previous record was December 13, 2017, just a few days before the price reached $20,000.
2. Despite the high volume of transactions, the transaction costs of the Bitcoin network are still at their lowest level since August 2017. Keep in mind that bitcoin usage and costs are negatively correlated. Therefore, seeing the volume of transactions is comparable to the end of 2017, and the cost is far below this level, it proves the role of Bitcoin technology upgrade, which makes this possible. One major upgrade is SegWit, which uses a clever way to increase the size of each bitcoin block without having to hard fork through bitcoin. At the same time, this paved the way for a second, more meaningful upgrade: Lightning Networks, which helps drive small deals, while maintaining transaction speed while maintaining bitcoin costs.
On the whole, we have good news in the following three areas:
- A major uptrend confirms the beginning of the bull market
- Fundamental improvements have been greatly improved, which will help maintain the rise
- Bitcoin may be subject to significant adjustments, giving investors a very suitable entry opportunity.
Author: Juan Villaverde, 2019 Nian 5 Yue 22 Ri description link https://weisscrypto.com/en/article/coming-next-bitcoin-correction-and-best-buying-opportunity-since-2015