When observed long enough, any market will start to demonstrate certain patterns. The latter usually coincide with major economic cycles. The cryptocurrency market is not an exception. Important news and market sentiment play an important role in directing the price action. Events like the ICO ban in China and the introduction of tighter regulation can send the BTC price down in a matter of hours. Medium and long-term traders may find the use of patterns beneficial, as they help identify entry and exit points.
As many other cryptocurrencies, Bitcoin is not growing steadily, it is doing so in increments. Periods of active growth are intermingled with periods of recession. As of now, the world has seen two complete growth cycles. The third one, initiated on September 15th, is unfolding right now. During the last one month Bitcoin has not only appreciated 70 percent, but also hit a new all-time high of $5,100.
Bitcoin is now traded at above the previous high of $4,950, that was observed on September 1st. The bullish trend, therefore, is no longer a mere recovery but a full-blown growth cycle. How high can the Bitcoin price climb this time? It looks like the purely speculative hype, surrounding the world’s most popular crypto, is finally gone. Both professional investors and amateur traders pay more and more attention to the intrinsic value and fundamental analysis. More than ever the price action can be expected to depend on major legislative initiatives, adopted in the world’s most prominent economies. Russia and China lean towards the conservative side, effectively banning all Bitcoin exchange-related activities. Japan and Taiwan move in the opposite direction, offering registration to a list of thoroughly checked and approved exchanges. After all, a mix of positive and negative events can be expected to affect the price.
It is hard to tell for how long the current price rally will hold. Most probably, the market will be hit with another news bomb or an unexpected price plunge sooner or later. Traders may want to know that the first two periods of growth have lasted for 4 and 1.5 months respectively.Trade on BTC
NOTE: This article is not an investment advice. Any references to historical price movements or levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future.
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