At first glance, with the gloomy news on the crypto market, we could fall into the pessimism of the media related to its ecosystem. Specifically, bitcoin (BTC) is among some skeptics who are already celebrating its death. On closer inspection, however, the crypto queen who has yet to say her final word doesn’t seem so gloomy.
The current analysis was prepared in collaboration with the crypto exchange platform Bitget. Present in more than 100 countries, Bitget is a cryptocurrency exchange created in 2018. With a user base of more than 8 million, the digital asset platform offers various services to its customers. These include derivative trading, spot trading, social trading and copy trading. Thanks to its innovative products, Bitget appeals to both amateurs and professionals.
Once upon a time: the bear market
The bearish market is all the rage in the crypto universe. Also, a climate of uncertainty hangs over bitcoin. Like an airplane losing speed, its price has been a succession of rollercoasters over the past few months.
This downward trend may not be encouraging, especially given the current context. In fact, the crypto market is starving with the many shipwrecks of players who were thought to be safe bets. The blacklist includes Terra-Luna, Celsius, 3AC, Voyager, FTX, or even BlockFi. The outcome of the races, the bitcoin toasts and the price is still in the red this week:
However, it must be recognized that the bear market has the advantage of trimming the market by putting less reliable players on the sidelines. This purge suggests at least one thing, the faults of the weakest are exposed.
Even if the bear market seems to be playing extra time, pulling afterwards the price of bitcoin to fall, it is more clear, given the empirical data, that the currency developed by Satoshi Nakamoto still has energy in its engine.
Bitcoin (BTC), this phoenix rising from its ashes?
The main question today is to determine how much bitcoin can take off again. Fortunately, this is a task that is possible.
Soon the price of bitcoin (BTC) at 100,000 dollars
If we rely on the Bitcoin Rainbow Chart, which is a favorite indicator for crypto enthusiasts, the price is likely to rise again in the near future. The Bitcoin Rainbow Chart is a logarithmic regression chart that provides insight into the evolution of the bitcoin price.
This tool highlights movements in the market, and gives an indication of the selling or buying strategy. For this purpose, the colors on the upper border of the rainbow indicate a bullish market, which would help to sell. The colors on the lower limit indicate a bearish market, as well as buying.
In concrete terms, what we keep from this Web3 crystal ball is empirically the halves that allow the price of bitcoin to rise again.
As a reminder, a halving is the division of the reward granted to bitcoin miners every four years. Also, the next one, which will take place in 2024, should make it possible to boost the course of the queen of crypto, with a ceiling of 100,000 dollars.
Bitcoin (BTC) was taken as a lever for its price growth
Compared to the internet in its early days, there is nothing out of the ordinary about bitcoin’s price drop. On the contrary, the parallel between these two technological innovations, each as disruptive as the other, cannot be ignored. Bitcoin follows the same trend that the Internet had in the 90s.
The editorial In Bitcoin We Trust provides more details on this topic and highlights the same curve shared by Bitcoin users and Internet users.
Moreover, Wells Fargo clearly shows this parallel in its February 2022 report on cryptos. Bank of America particularly emphasizes the rapid adoption of these two innovations. In other words, just like the internet, encryption adoption will happen at such an accelerating rate that there will be no point of return.
In addition, despite the fact that the price has decreased significantly in a year in the context of the bear market, the daily number of bitcoin transactions has not decreased significantly. This simply means that the bearish market and the drop in price have not dampened the enthusiasm of crypto-enthusiasts, who are bigger and bigger than ever.
Illiquidity as a factor driving up the price of BTC
Let’s look at the liquidity of the bitcoins being held. Chainanalysis estimates the number of illiquid bitcoins at 15.7 million. So these are cryptos that are in the interest of their owners, who do not make them available to the market, or only for the long term.
This leaves about 18% of bitcoins in circulation, or 3.45 million BTC. It must be said that the queen of cryptos has gained more acceptance as a currency of exchange for goods and services around the world.
For example, El Salvador and the Central African Republic have adopted it as a legal proposition to enable financial inclusion, promoting its use in local businesses. In addition, e-commerce platforms are becoming more favorable to the use of cryptos. This is the case of Ebay which now accepts payments in bitcoin.
Since the adoption of cryptos around the world is increasing, there may be a certain lack of this proportion of available bitcoins. The consequence is the price of bitcoin will go up due to its scarcity.
To carry out,
Considering the above, it seems very likely that the price of bitcoin (BTC) will once again find a bullish trend. However, the question on everyone’s lips is ” When will bitcoin (BTC) see another rise in price? “. The FTX debacle created a contagion effect on the crypto market. Therefore, it discourages some people who hope to get new information bull market. Therefore the entire ecosystem is on red alert. However, this is not his first bear market. This is music that every crypto enthusiast knows. Some predicted the death of bitcoin (BTC). However, its resilience and massive worldwide adoption defy predictions.
Get a summary of the news in the world of cryptocurrencies by subscribing to our new servicedaily and weekly so you don’t miss any of the essential Cointribune!
Cointribune’s editorial team unites their voices to express themselves on topics specific to cryptocurrencies, investment, the metaverse and NFTs, trying to answer your questions in the best possible way.