- Bitcoin (BTC) traders and investors are starting to fear for the worse again
- Bitcoin’s long-term bias is still intact
- The fundamentals of Bitcoin are leaning in favor of the bulls
Bitcoin News Today – Many Bitcoin investors and traders are starting to fear for the worse again. Investors such as Mark Dow, a hedge fund manager who shorted the $20k BTC top in 2017, have started claiming that the recent downtrend indicates that the digital currency market is on the verge of macro collapse.
Their thesis is that the pump from $3k in December 2018 to $14k in June 2019 was just an echo-bubble of the previous market cycle, not anything more. Regardless of these assertions, a top on-chain analytics-focused analyst said that the ‘bull run is close’ as a series of metrics indicates that the long-term bulls bias of Bitcoin is still intact.
Bitcoin (BTC) Price Today – BTC / USD
Long-Term Bull Bias of Bitcoin Remains Intact
The founder of digital currency analytics platform LookIntoBitcoin – Philip Swift – recently issued a ten-part thread, suggesting that the price of Bitcoin bias is still positive due to a confluence of factors. Firstly, he said that the digital currency is holding over its 350-day simple moving average. This is crucial as the price moving and holding over this level has always signaled the beginning of Bitcoin bull markets.
THREAD: $BTC: On-chain and market cycle update
TL:DR – Bull market is close!
— Philip Swift (@PositiveCrypto) December 5, 2019
Secondly, Swift said that the Network Momentum indicator of Bitcoin, which keeps track of the movement of coins to determine the network usage, has started to trend higher, leaving bear market levels. This is a trend that is usually seen 6 to 10 weeks before the start of a bull market, according to Swift.
Finally, the Golden Ratio Multiplier – an equation that the analyst created to analyze the price of the digital currency – indicates that the digital currency could see a massive move to $12k or $13k by January or February. For Bitcoin to hit the low-end estimate of Swift, $12,000, Bitcoin would need to surge by about 65 percent from its current level, in nothing less than three months’ time.
Bitcoin’s Fundamentals Are Leaning in Favor of Bulls
The fundamentals of the digital currency are also leaning positive, according to a top venture capitalist. In an interview with Bloomberg, Spencer Bogart – Blockchain Capital – said that the fundamentals of Bitcoin are leaning in favor of bulls. One of the points Bogart pointed out is that Bitcoin is still a very useful network from the standpoint of transactions, “processing transactions worth $1 billion to $3 billion every day.”
He also looked at the adoption and growth of the digital currency and digital currency fiat on-ramps into the industry. He specifically looked to the growth of the portfolio firms of his company, Kraken and Coinbase, as a way to back his point.