Bitcoin May Close The Multi-Year Bear Phase: What To Expect?
Analyzing the market behavior of Bitcoin over the past few months, some crypto experts are optimistic about the future of the flagship cryptocurrency. Against the backdrop of a bearish swing, Bitcoin was able to demonstrate its ability to quickly rehabilitate its positions. Thanks to this, Bitcoin can become one of the best and most profitable assets in 2020.
The relative strength of Bitcoin compared to other assets can play in favor of the cryptocurrency market. Some analysts believe that a multi-year bear market can become the foundation for a new colossal take-off for the flagship cryptocurrency. The presence of a stable uptrend after a collapse in March may indicate that Bitcoin will continue to increase during 2020.
Now the situation in the global economy is also fueling interest in cryptocurrency. Bitcoin looks confident against the backdrop of weakened traditional markets. This could be another powerful driver for Bitcoin increase.
Stop the bearish trend: Bitcoin can turn the market paradigm up
Bitcoin entered the bear phase at the end of 2017, when there was a crushing collapse from highs of $20,000 to below $10,000. After trying to establish itself in an uptrend position, the value of BTC fell sharply, which led to its trade in the range of $3,000.
As a result of this fall, cryptanalysts abandoned high short-term price forecasts. Now many of them are convinced that the multi-year bear market is ending and Bitcoin is moving into the bullish phase.
In particular, a crypto trader under the pseudonym Bitcoin Jack reported this opportunity. He noted that after the collapse in 2017, the value of Bitcoin for 40% of the time was below the main technical level. Given the behavior of Bitcoin in previous bearish phases, the flagship cryptocurrency has a good chance of continued upward increase.
Bitcoin Jack noted:
“40% of the time since 2017, Bitcoin has been below a key technical level. The previous bearish cycle ended with a new increase phase of Bitcoin. The remainder of 2020 is expected to be a watershed for Bitcoin.”
Weak global economy “come in handy” for Bitcoin
Recently, CryptoSlate provided a report that analyzed the benefits of Bitcoin as an asset. The stability of Bitcoin in an unstable 2020, as in previous global crises, indicates the long-term prospects of cryptography.
A weakening global economy, traditional markets may play in favor of Bitcoin. In such circumstances, the flagship cryptocurrency can prove its digital security and reliability. At a time when other assets will shake off after the crisis, Bitcoin in 2021 could become a key asset.