The 45 percent month-on-month rally has likely put the leading cryptocurrency on the path to a long-term bull market, technical studies indicate.
As of writing, BTC is changing hands at $8,300 on Bitfinex, having clocked a two-month high of $8,507 on Tuesday.
A month ago, it was all gloom and doom in the bitcoin market, as the cryptocurrency had created back-to-back long-term bearish chart patterns in the months of May and June. Consequently, BTC looked primed for a move lower to $5,000.
However, the inverse head-and-shoulders breakout seen earlier this month confirmed a short-term bearish-to-bullish trend change. Furthermore, the convincing break above $8,000 seen this week appears to have set the stage for a major bull run.
So it is still safe and profitable to invest in BitCoin?
Cryptocurrencies, in particular Bitcoin, have been a huge trend in recent years, with 2017 seeing the Bitcoin bubble help cryptocurrencies to surge in popularity. Despite the popular trend of Bitcoin, there is still some dispute about whether or not the cryptocurrency is actually a safe investment opportunity. Here, we’re taking a closer look.
One of the biggest reasons for people to start looking at investing in Bitcoin, is due to the availability of the cryptocurrency. Unlike many currencies which are restricted by borders, Bitcoin offers global accessibility, further helping to integrate traders and investors from around the world. With the availability of a trusted social trading platform, obtaining, investing in and trading Bitcoin is easier than ever before.
All traders need to invest in Bitcoin is an internet connection. Interestingly, investors don’t even need to have a solid understanding of the cryptocurrency and its market (although this is always a good idea in order to reduce risk and trade in a knowledgeable manner), as social trading platforms offer the opportunity to mimic the trades of some of the most successful traders on the market.
One of the main reasons as to why people query whether or not it is safe to invest in Bitcoin is a result of its volatility. Bitcoin is well-known for its daily price fluctuations with drops and rises which can be equivalent to thousands of dollars occurring overnight. As a result, many traders have decided to steer clear of the cryptocurrency, despite the fact that it has made millionaires out of some of the earliest investors – with Erik Finman investing at the age of 12 and now owning $4.4 million worth of Bitcoin.
Despite Bitcoin’s historical volatility there are some suggestions that the fluctuations are beginning to reduce in numbers, with some people even believing that this is the last of Bitcoin’s volatile nature.
However, it is likely that a period of low volatility will be met with a very sharp increase in volatility levels, meaning that there could be a skyrocket in prices in the next few months. While this can be a tempting consideration for some investors looking to buy in while the price is relatively stable (for Bitcoin), there is a high chance that the bubble will once again burst, just as it did in 2017.
One of the main reasons as to why more people are considering investing in Bitcoin is due to the market regulation talks that are ongoing. While some people are concerned that governments are looking a way to centralize this traditionally decentralized asset, others believe that some form of market regulation could help to further stabilize the market, making it even more appealing to investors.
However, regulatory talks have already been seen to flutter the market, with a number of people cashing in at the slightest whisper that a government somewhere in the world is set to regulate cryptocurrencies. This was particularly apparent in January, where we saw a 14% slump in light of South Korean regulatory discussions.
With this in mind, it is important for investors to consider whether or not they wait for the impending regulations to come into play or invest now when the market is still relatively unstable.
The Future Of Currency
A large proportion of the population believe that cryptocurrency, and Bitcoin in particular, is set to become the future of currency as we know it. The decentralized ledger certainly still has a lot of obstacles to overcome, but that doesn’t mean that the concept of being the only form of currency in the future is unattainable.
If you are a believer in cryptocurrencies becoming a legal and recognized form of currency which is adopted around the globe, despite market regulations and critique from traditional financial institutions, then Bitcoin can be seen as a safe investment. If you are unsure, and you want to invest when the market is stabilized, then it may be better to hold off investing in order to ensure that you are investing at exactly the right time.
There are a lot of factors to consider when it comes to investing in Bitcoin, but with the growing popularity, we’re set to see prices begin to climb once again.
How cryptocurrencies will fare against government regulations which are on the horizon is yet to be seen, but with the adoption of blockchain technology which makes up the Bitcoin, we are almost certain to see Bitcoin become a popular and safe trading asset sooner rather than later.
So it is still safe and profitable to invest in BitCoin?
I don’t offer investment advise so I cannot say. What I can say is the future is coming fast and Bitcoin is kicking ass. I only wish I had bought it at $ 300 about 4 years ago. But back then my bank freaked out and would NOT let me send the US dollars into Bitcoin. They threatened to close my account. So I freaked out and backed out. But now? Oh well.