Bitcoin (BTC) hasn’t been doing all too hot over the past five months. Since June, the leading cryptocurrency has cratered by almost 50%, collapsing from a year-to-date high of $14,000 to $8,500, where it sits today. BTC fell as low as $7,300 just three weeks ago.
Related Reading: Crypto Tidbits: RBC May Embrace Bitcoin, China Bashes Cryptocurrency, Ethereum DeFi Booming
Sure, a 40% drawdown isn’t the end of the world. Though, considering that countless investors were calling for a bull run just months ago, this drop has harrowed many a trader. In fact, some have ventured to say that Bitcoin’s long-term uptrend, which brought it from the doldrums of irrelevancy (like sub-$1 irrelevancy) to $20,000 and down once again, is coming to a close. In other words, they say that BTC is peaking, and it’s all downhill from here.
Though, an excerpt from a report from a top markets research firm suggests that Bitcoin’s long-term uptrend “remains intact.”
David Martin, the CIO of Blockforce Capital, recently shared some of a report from Delphi Digital, in which the research boutique says that “[although] short-term sentiment gauges have rolled over, the longer-term uptrend still remains intact.”
— David Martin (@mrtn_dvd) November 15, 2019
Is Bitcoin’s Uptrend Really Safe?
But is it really? Is Delphi really right? According to a number of analyses, for sure.
Per previous reports from NewsBTC, the monumental surge of volumes seen last June, which marked an all-time high, are indicative of a long-term bull trend forming. Digital asset manager Charles Edwards noted in a Twitter thread that fresh all-time highs in volumes were followed by consolidation, just like we’re seeing now, then “huge rallies”; the growth in volume leading to long-term exponential bull markets that brought Bitcoin to orders of magnitudes higher than it was before the surge.
It isn’t only volumes that are signaling that a long-term bull trend is (back) on the table. As reported by NewsBTC previously, popular cryptocurrency trader FilbFilb noted that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses. As Filb’s chart below depicts, the last time the 50-week crossed above the 100-week, Bitcoin rallied for months straight, surging to fresh highs month in, month out.
— fil₿fil₿ (@filbfilb) October 30, 2019
And, the macro narrative is supporting the cryptocurrency market, or rather, the need for a new form of money in general; legendary hedge fund manager Ray Dalio has just confirmed that he thinks that there will be a “paradigm shift” in the economy, as the capitalistic machine just isn’t working for everyone anymore. Dalio, in fact, said that he thinks the “world is broken.” The Wall Street legend did not mention Bitcoin, though many took his rhetoric as a positive sign for a new form of money, a new economy.
Related Reading: Bitcoin Permabull Comes Out Against ETF Hopefuls; Here’s Why
Featured Image from Shutterstock