After the steep price drop in April and May of this year, during which the bitcoin price almost halved, the cryptocurrency is consolidating in the range between $30,000 and $40,000. However, indicators are suggesting that bitcoin could break out soon. Is there a good buying opportunity waiting?
The signs are pointing to a bull run. If you look at the growth of the network, for example, measured by the number of new participants, the trend is pointing upwards.
What analyst @Dilution-proof means by “ weird little cycle” is the strange behavior of the #1 cryptocurrency compared to past cycles. If $65,000 was indeed the all-time high, the cycle would have been much shorter than any other.
Twitter user @dustinwatchman tries to explain the cycle with an image and is putting his hopes on the second half of the year — and once again basing his thesis on past cycles.
And then there is Jack Dorsey. The Twitter founder announced via Twitter a DeFi platform for Bitcoin applications. According to Dorsey, Square is working on a spinoff called “TBD” to make Bitcoin DeFi ready.
Bitcoin has not been the medium of choice for DeFi applications, as the coin is less programmable than Ethereum, for example. But it makes sense to equip the cryptocurrency with the largest market capitalization for decentralized finance.
By the way, anyone who wants to earn from all of Jack’s Bitcoin buzz simply needs to invest in Square shares, according to Dorsey. After all, the company also acts as an umbrella organization over the Bitcoin projects.
Another Indicator Also Points Upwards
The stock-to-flow model of crypto analyst PlanB, followed by over 600,000 people on Twitter, also indicates that bitcoin still has plenty of upside potential. The stock-to-flow model has been able to predict bitcoin’s price performance with astonishing accuracy over the past few years. The current price of bitcoin deviates more than ever from the model’s calculations, according to the portal Cointelegraph.com. If the model’s assumption is to be believed, bitcoin should currently stand at around $80,000. However, Lex Moskovski, head of investments at Moskovski Capital sees nothing negative in this deviation from the model, as he announced via Twitter. Rather, it is a great entry opportunity for any investor who believes in the stock-to-flow model and Bitcoin in general.
Bitcoin continues to be in a consolidation phase. Among experts in the crypto space and within the online community, opinions remain very diverse. There are almost as many Bitcoin bears as Bitcoin bulls. It remains to be seen whether the indicators are right and bitcoin can break out to the upside again, or whether the downtrend is not yet over.
If you think this article was worth the read, please consider clapping below and sharing it within your networks. It would help me write more and even better content. Thanks a lot!
With much love,
The article includes the personal opinion of the author. It should not be considered Financial or Legal Advice. All data and numbers have been sourced on 20/07/2021. Changes may apply.