Bitcoin - A Brief Summary
Bitcoin is a cryptocurrency that is digitally or virtually based. Bitcoin can be compared to an online version of cash. You can use it to buy products or services, but not many shops accept Bitcoin yet but soon it will be accessible everywhere. The physical Bitcoins you see in photos are a case of novelty. They would not be of any worth without the private codes printed inside them.This year Bitcoin hit the most remarkable mark in its history of the bull market. This led Bitcoin to be even more popular and notable by almost everyone who has the faintest idea of cryptocurrency.
Because sellers appear to be worn out and unable to sustain their assault on the crypto market, the broad mood in the crypto market has shifted firmly bullish.
Investor Fidelity Jurrier Timmer believes Bitcoin could recover its earlier highs and return to its original price discovery process. Timmer compared BTC's price at different historical moments in a thread shared on Twitter.
A comparison of Bitcoin's current price motion with that of the distribution phase in February and April may be seen in Figure 1. BTC's price appeared to be stagnant at the time but eventually moved upwards.
In the opinion of many analysts, the macro-economic environment has supported Bitcoin, gold, and other risk assets that can generate returns for investors. Thus, Timmer compared the performance of Bitcoin (BTC) to that of gold in the 1970s.
A similar pattern may be seen below in the behavior of cryptocurrency and precious metals. As long as BTC's market share surpasses gold's, the expert's prognosis could be indicative of future gains. In addition, Timmer said: "Even bitcoin's network (its fundamentals) continues to improve. There were 34.3 million addresses (with at least $1) during the height of its popularity. As a low point, that number dropped to 31.8 million, but has since risen back up to 33.5 million."
Bitcoin Fundamentals Strengthen, On Route To $100K?
When it comes to determining the level of technology adoption, Timmer's demand model uses an S-Curve pattern, and his supply model is comparable to Plan B's Stock-to-Flow.
These two models intersected mid-July during the third market capitulation, creating a "excellent foundation" from which to consolidate the market. According to the chart, when these models cross again, Bitcoin will be worth roughly $100,000.
Bitcoin's hash rate is climbing back from the abyss (following the mining ban in China), although it remains well below the peak. Higher prices will likely fix that as mining follows demand.
The analyst also cited the fact that Chinese miners are leaving the country as a positive factor for BTC's price in the long term. In addition to increasing the cryptocurrency's energy efficiency, this event could encourage new entrepreneurs to enter the crypto industry.
As a result of capitulation events, Bitcoin fell from an all-time high of $64,000 to a yearly low of $29,000. Short-term investors, according to the expert, have lost market share to long-term investors or holders of securities.
According to Timmer's figures, the latter accounted for roughly 12 percent of the market. This was what the expert had to say:
I'm impressed how resilient bitcoin and the crypto space, in general, have been during this 55% correction. The speculators (tourists) got crushed as they usually do during drawdowns, and now makeup only 17% of the market. That level is consistent with past bottoms.