Kanchanara | Unsplash
There is no doubt that there is great optimism surrounding cryptocurrencies, with much more focus on Bitcoin. The arrival of a bullish season at the end of the year had been rumored for quite some time. Perhaps for many, it has been a surprise, but Bitcoin has managed to reach a new ATH that has left everyone astonished.
Bitcoin Price | CoinGecko
The climb to these prices began on Sunday, surpassing the $80,000 mark. Probably, several external factors played a role, but the one that would make the most sense could be the victory of Donald Trump in a geopolitical context that impacts the hopes for the fulfillment of promises made during the campaign. These promises are aimed at defending and ensuring that Bitcoin mining and self-custody of cryptocurrencies are rights for all Americans, so that the government should not intervene or control these digital asset transactions.
In my opinion, there should be regulation to prevent certain situations that we could all imagine. However, I believe that what the SEC has been doing all this time has been overly invasive and counterproductive, which has often delayed adoption indefinitely. In fact, it was only when tension was reduced on several pending requests that the ETFs could enter the market, along with a new way to participate in Bitcoin and a significant influx of money. The current price probably has a lot to do with this event, which has been very important for many.
If we consider that greater acceptance of Bitcoin will also lead to greater confidence in altcoins, I believe that investments will start flowing more strongly, bringing a higher level of innovation in emerging technologies.
In general terms, we can say that the news impacting us has an effect on our short and medium-term speculation. The current outlook is hopeful and represents a path of overall growth for the financial sectors involved.
Greed and Fear Index | CoinGlass
According to CoinGlass data, the fear and greed index currently shows very positive speculation, with a score of 76 out of 100. When this happens, we usually see increased trading volume, resulting in intense buying pressure that drives the coin to new values, as seen with Bitcoin and other cryptocurrencies exhibiting similar patterns.
The duration of these states is, in my opinion, what determines a bullish or bearish season, as well as a neutrality where significant fluctuations are not usually observed, indicating a stagnant market. These values can change drastically depending on how news and rumors influence them, impacting the decisions of those holding or looking to buy or sell a particular cryptocurrency. Currently, we are very positive and expect the market to adopt a bullish stance for an extended period.
Of course, there will be times when market corrections occur. I believe it is vital to stabilize the price of a cryptocurrency when it becomes excessively high and unsustainable over time. Additionally, profit-taking should be considered, which will generate significant selling pressure. These pullbacks are quite common. In fact, Bitcoin had dropped below $80,000 and then rose again, indicating that some mentioned operations have been carried out.
When it comes to risks, betting on a downturn right now is likely to be considered highly risky. CoinGlass also provides data mentioning that there have been short positions on Bitcoin liquidated with a value of $123 million in the last 24 hours. Due to the current volatility of BTC, any decision could result in spontaneous liquidation, especially in the futures market. However, this is just an observation I am making.
I have no doubts that the price of Bitcoin will continue to rise to new highs. What does bring me satisfaction is that altcoins are starting to take off towards new values, with a very large growth in a very short time. From here we should think about how to generate and maximize profits, as the conditions are beginning to be given in a remarkable form of opportunity.
- Main image edited in Canva.
- I have consulted information at decrypt.co: I and II.
- Translated from Spanish to English with Hive Translator.