The past 14 months have been arduous for Bitcoin and the cryptocurrency markets in general, and investors that have held through the market crash are increasingly wondering as to when, and if, their crypto investments will ever be able to surge back towards their previously established all-time-highs.
Although uncertainty has swept across the markets, there are multiple pieces of evidence that may point towards the possibility that Bitcoin is nearing the end of what has become the longest-ever bear market in its relatively short history.
Over the past couple of weeks Bitcoin has been able to continue respecting the low-$3,000 region as a strong level of support, finding buying pressure each time this price level is touched. Because BTC has been able to maintain above its 2018 lows, many analysts are beginning to believe that this price level could be a long-term bottom.
Alex Krüger, an economist who focuses primarily on cryptocurrencies, discussed the possibility of Bitcoin beginning to reverse its bear trend, noting that it currently has all the components of a bottom.
“A strong move up to fill in the gap above is a matter of when not if. Such move up can happen entirely on technicals i.e. it does not need a fundamentals catalyst nor a change in market structure.”
Bitcoin (BTC) is Also Finding Increased Fundamental Strength
In addition to possibly garnering increased strength from a technical perspective, Bitcoin is also seeing an increased amount of catalysts that could potentially help lead to an upwards price surge.
Krüger further added that there are a multitude of positive developments in the cryptocurrency space that signal growing adoption. Some of these developments he points to are Fidelity Investment’s upcoming platform for institutional investors interested in cryptocurrency, Bakkt possibly launching in March, and Lightning coming to Square’s Cash App.
– Lightning coming to Square’s Cash App
– Binance accepting credit cards
– Binance fiat onramp
– Mt Gox rebirth
– Facebook exploring crypto
– Bakkt possibly coming in March
– New platforrms/apps (Dharma, Abra, etc)
– Fidelity launching service for institutional investors
— Alex Krüger (@krugermacro) February 20, 2019
When looking at the present technical strength of BTC as well as its growing fundamental strength via increased corporate and institutional adoption, it does appear to only be a matter of time before Bitcoin pulls itself out of the current bear market and begins a new journey towards its previously established all-time-highs.
Krüger summarized his comprehensive thread regarding the current state of Bitcoin on a cautiously optimistic note, explaining that although it appears that BTC has in fact found a long-term bottom, dwindling interest in the cryptocurrency space does leave room for further downside.
Investors, traders, and cryptocurrency advocates alike will likely soon gain greater insight into whether or not the markets will recognize the plethora of positive developments that have occurred over the past year, despite the persisting bear market.