Bitcoin Price Started to Dip But It’s Not The End Of The Bullrush

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However, not a lot of people understand the reasoning behind the sudden price increase. And there are two reasons for it.

Bitcoin Halving Event

Blockchain depends on its miners to process transactions — and in exchange for that, pays them with Bitcoin. However, the amount of the reward is not fixed — each couple of years it’s slashed in half to compensate for the growth in calculation power and create an alternative to inflation.

Halving events are usually preceded by the growth of the Bitcoin value, and it seems like 2020 won’t be an exception. Essentially, Bitcoin is about to become twice as hard to get — and twice as valuable.

Of course, it’s hard to say how the coin will hold up AFTER the event. The pessimistic forecast is stagnation, but there are other factors that may keep the market bullish.

Technical Conditions

No asset market is truly chaotic — or, at least, it should not be. There are rules on it that can help you predict the future turn of events.

Bitcoin itself has been in the red since the beginning of 2018, losing the investors left and right. By March, the majority of holders were the core supporters who will not sell until they have a good reason to. The coin reached its lowest possible value around 3 000 USD, but felt rather comfortable there and even attempted a half-hearted recovery. In fact, some indicators have even started to turn positive, Then click here for more information about bitcoin news.

Now that we have a corresponding bullrush caused by real-world events, positive technicals actually come into play full-force. They alone won’t be enough to keep the market bullish after the Bitcoin halving event, but they can definitely prevent a sharp dropoff.

Increased Market Activity

The interest in crypto has surged again, now that the market is turning bullish once more. Since early March, the market has grown by more than a quarter and now has 350 000 transactions per day on average. And, most importantly, it keeps growing.

There is a possibility that this is just redistribution of coins between different existing users. However, it is more likely, that we are seeing another influx of newcomers to the market, which means that this interest might be retained for a while. And the increase in users, generally, means that the market will stay bullish.

Future Forecasts

Nobody knows what happens to Bitcoin next, but so far the vision is largely positive. Good technical factors, the increased value after the halving and an increase in the market activity are bound to keep the market bullish for a while. Not to mention that some other interesting news is might be around the corner — particularly, whatever Vitalik Buterin has been cooking for the last year.

Either way, increased market activity makes cryptocurrency a valuable trading asset. And while the market is not as safe to trade on, as it was a couple of months ago, the possible profits have also grown significantly.

What is the Best Way to Trade Bitcoin

There are quite a lot of ways to buy and sell crypto, but most of them aren’t really suited for professional trading. You can use online exchanges, like Coinbase, but they come with their own disadvantages — you need to be a citizen of a certain country to withdraw money, for example.