There are only USD 2,000 left to break Bitcoin’s all-time high. Analysts consider that the bullish stage is just beginning.
People’s perception of time changes as a result of market cycles since they lead to reconsider its linearity. Everything seems to be déjà vu, so it is difficult to know whether it is 2017 or 2020. Last month, the pioneering cryptocurrency was trading at USD 11,000. A few days ago, its price was USD 15,000. Bitcoin is above the USD 18,000 barrier.
In the last month, the growth line has been so steep that it is dizzying to look down. Given that history repeats itself in market cycles, it seems clear that the accumulation phase of this cycle is starting to give way to the bullish phase. This is the stage that occurs after the price of an asset has hit bottom and investors begin to acquire the asset massively.
The best time for accumulation this year was March after Bitcoin reached its lowest point at USD 4,121, a price not seen since March 2019. Some thought that the price would only drop, so they gave their coins to those with a longer-term investment horizon.
The bullish run is now starting, leading the price of Bitcoin to grow extremely fast. During the fall, some uncertainties and doubts are beginning to give way to trust and greed. The market sentiment stops being one of fear of losing to become one of fear of missing out (FOMO).
The same as in the year 2017, the price of Bitcoin is growing by thousands a day. From November 17th to December 17th, it went from USD 7,000 to USD 20,000.
Many analysts consider that this bullish phase in Bitcoin’s price is just beginning and could extend for several months. However, movements as dizzying as the current ones may show their momentary corrections.
Some experts forecast a ceiling between USD 300,000 and USD 500,000 for this market cycle. However, this does not mean that the price will remain permanently at those levels. That is precisely what makes it a cycle. The bullish phase usually precedes the distribution phase, to then move to the bearish phase.
There are a lot of institutional investors showing their interest by putting their money on Bitcoin. Many publicly traded companies are investing in this cryptocurrency to safeguard their funds against the potential devaluation of fiat currencies. They project very long-term investment horizons, making this growth much more organic and solid than that of 2017.
It is important to remain cautious about possible losses of money. An adage says, “Do not invest more than you are willing to lose.” However, Ray Dalio recommends looking for some stores of value other than cash.
Investors should not let investment gurus that emerge in this bullish phase carry them away. It is best to do some personal research before risking money on Bitcoin or any other crypto asset. It is also important to remember that someone’s gains can be someone else’s losses.
By Alexander Salazar
