Bitcoin right now seems really promising when it comes to future evolution, with many specialists expecting the cryptocurrency to break the five figures mark. Even so, there is one factor that has to happen before investors and traders become confident in this new bullish trend.
If Bitcoin does not end up faced with a price correction by the end of January, we will see the largest market value monthly increase since the middle of 2019. BTC price is definitely volatile but the increase is practically a signal that there is a bull run incoming soon. The one thing that needs to be analyzed is whether or not BTC manages to end the month above the figure of $9,158, which is exactly what analyst Filbfilb declared:
This veteran analyst also pinpointed MACD (moving average convergence divergence), which focuses on how fast the 2 moving averages relate. MACD is often utilized by traders in order to identify price direction and momentum, together with price entry points. Two moving averages converged so the upward trend is seen as a strong possibility.
There are also other analyst that started to predict the fact that a bull market is going to appear in the near future. Fundstrat’s Thomas Lee highlighted a critical point crossed by the cryptocurrency’s 200 day moving average.
Altcoin valuations are guided by the market movement of Bitcoin. Major platforms showed positive monthly increases and they show really similar technical attributes. We can assume that Bitcoin is faced with a bull run that is going to initiate numerous other blockchain assets.
We should highlight that upward Bitcoin movements that are significant adds some volatility. Corrections always appear whenever the price of BTC goes up. Due to this, in the following months we can easily end up seeing some extreme market swings. Investors have to be ready for this.
The market will also be impacted by several non-technical factors. For instance, development and regulatory issues in regards to the BTC Lightning Network might end up playing a really important role in the growth of interest among investors.
Block halving is a noteworthy event to consider. This should happen in May. The very last block reward cut was the one that let to the bull run coinciding with the all-time high market value of Bitcoin. Not much changed in blockchain since then. This is definitely a milestone that is anticipated by many right now.
Much more analysis will be needed in the future for both Bitcoin and altcoins. We will see what happens but the truth is that the mood of market investors is optimistic.
