Aspects That Can Drive Bitcoin’s Upward Trend

Aspects That Can Drive Bitcoin’s Upward Trend

We are in a crucial phase for Bitcoin, which many often call a crypto winter, a stage in which prices decrease considerably to register their rise later. Furthermore, click this link for more information on owning cryptocurrency.

The volatility of Bitcoin is one of the indicators that crypto-asset investors fear the most. Still, when risk control is managed, it can be operated easily and comfortably since it is an element that is part of the digital financial market.

FOMO at its best

After several months of constant decline in Bitcoin and other digital currencies, users and investors in the medium term have begun to assess the risks to which they are subject to continue lowering the price.

The feeling of fear of losing the opportunity to obtain higher profits or returns is in this stage of crypto winter at its highest level; many investors were waiting for a Historical High that would possibly reach $ 100,000, but the panorama has been the complete opposite.

To overcome this type of sensation is quite complicated; the fact is that when a panicked investor decides to get rid of his digital currencies, there is no turning back; the returns that he may have obtained have been wasted.

That is why controlling this type of emotion is even more complicated in a market as volatile as that of cryptocurrencies, but taking the various measures, such as considering the percentages of risk and the capital that is willing to lose, contributes to investment planning.

What is the probability that the trend of the crypto market will change?

At the beginning of the year, when everything looked a bit complicated, but even so, with a high enough price and a trajectory that could continue to grow, no analyst expected the result we are seeing today.

The odds pointed to a bear market, but everything went into a tense calm, waiting for what would come for Bitcoin and other cryptocurrencies; what no one expected was such a marked drop.

Although the only one who could get his forecast right was the analyst Willy Woo, who, since the price of Bitcoin began to decrease, attached to the repetitive phases and cycles of the leading cryptocurrency, determined the change in trend that was coming to go upwards later.

An exciting element to analyze is that when a high relationship between price and number of transactions develops, the digital asset price is usually overvalued, which changes the trend to a downward trend.

Bitcoin and the crypto market are going through a corrective phase where their price is evaluated. However, we do not know it by the same community of users where, through supply and demand, they will lead to the correct price that digital currencies require.

The bitcoin bears and their position before the decline

The comparison between the bears and the cryptocurrency financial market emerges as a graphic representation of the fearful attitude of investors in the face of a downward period or trend that may be going through the digital market in general.

The bears are usually investors who panic after a constant drop and dedicate themselves to selling their units, further convulsing the market. In recent months, the bears have unbalanced the market after an excessive supply of crypto assets.

The attitude of the bulls before a possible end of the crypto winter

Many analysts and specialists in financial markets have been evaluating the specific situation of Bitcoin, which indicates that this digital asset has demonstrated 2021 its ability to increase trust and profitability among its users.

That is why, before this crypto winter, the possibility that the trend will be reversed is very feasible, allowing the bulls to start boosting the crypto market again.

The new stage that is expected to begin in the digital financial market, although there is no exact date, will allow confidence in digital currencies to rise again after the constant external financial and economic measures drastically affecting Bitcoin’s development.

Conclusion

We may face an accumulation phase because the price of digital currencies is relatively low. However, the important thing is that many have been able to acquire cryptocurrency units later to see the expected returns in the distribution phase.

All stages, even if they are the least encouraging, will always have an end, which is why the change in trend will come. It will be the bulls and holders who will obtain the most significant benefits.

Bitcoin and ethereum – TDPel News

TDPel Media

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