Let’s take a flashback to December 2017, the height of the Great Bitcoin Bubble. At this stage of the game, people were taking out second mortgages to buy bitcoin, and the entire world had its focus on the cryptocurrency sector.
If you asked bitcoin pundits and analysts about their thoughts on the future of the digitals currency price action, all of them said it was going to the moon. With a price ceiling reaching an all-time high of $20,000, it’s not surprising that everyone was on the bitcoin bandwagon.
Some four months later, and the price finished its crash from the $20,000-moark, all the way down to the $3,300 handle.
One thing is for certain; no-one knows what bitcoin will do next.
The Aftermath of the Bubble
In the months following the popping of the bitcoin bubble, many people lost their life savings that over-extended their positions into the final stages of the mania. However, the price did not drop to zero and found some decent support at the $3,300 handle.
Considering that bitcoin started the bull-run at around this figure, it’s taken some 2-years to make a full round trip to the all-time highs and back. It’s quite clear to anyone paying attention, that bitcoin has volatile price action.
Some people blamed the market crash on manipulation by whales and “stable coins.” Others said that trustees selling large positions caused the crash – but no-one really knows the reason for the sudden price decline.
People Are Still Using Bitcoin
Despite bitcoins price dropping like a stone over the last 18-months, the market witnessed movements that still show promise for the future of the world’s premier cryptocurrency. People continue to trade, buy, and sell bitcoin, with instances of people using Bitcoin ATMs around the world rising.
The price recovered from $3,300 to around $11,000-handle in May 2019. We’ve since seen a sell-off in BTC that has it currently under the $8,000 handle. Still, Bitcoiners seem undeterred by the swings in price action and continue to HODL their portfolios.
Mining Hash Rates Continue Rising
If we take a look at the mining industry around bitcoin, we see that there is still a strong community supporting the project.
Hash rates continue to rise, despite the price reduction in recent months. Since bitcoin relies heavily on mining to support the network and verify transactions, we can say that bitcoin is currently moving from strength to strength, with solid fundamentals supporting the digital asset.
The Next Move – The Bulls or the Bears?
With experts divided on the future of bitcoins price action, relying on information from the media to determine price is a haphazard strategy. Even top CEOs are undecided on the future of the digital currency.
If we take an objective and unbiased look at the bitcoin chart, we see plenty of support at the $6,500 handle. If the price falls through there, we could see its next stop is the $3,300-floor. For the bulls, there seems to be little resistance for bitcoin to reach the $11,000, bearing a catalyst that starts the next leg up.