It’s been almost ten months since Bitcoin (BTC) reached its all-time high price near $20,000, and after months of constant downward movements, many traders are saying that the bear market could be over.
Between the price making higher lows and the countless fundamental improvements to Bitcoin, the reasons to be bullish are growing every single day.
Below you can see the one month chart of Bitcoin against the US dollar.
As shown by the trendline drawn above, Bitcoin is now making higher lows. Although the price has been relatively stable at $6,500, the chart shows the overall trend (in the short term) looks to be moving up.
On a larger time frame, Bitcoin is also making higher lows. The last time that Bitcoin was in a downtrend, its price dropped well below $6,000. In June the price dropped to $5,778, and in August the price went as low as $5,860. Now, Bitcoin has maintained strength and stayed above $6,000.
This evidence by itself does not mean the bear market is over. When combined with recent fundamental developments and historical data that shows BTC has seen its price surge in the fourth quarter of most years, a case for a bull run starts forming.
Even though the price has been declining, that doesn’t mean development stops. Bitcoin improves no matter what. As long as there’s faith in its technology, there will always be improvements to the protocol.
Bullish news includes:
- Rumors say that Nasdaq is organizing its own Bitcoin trading desk
- SegWit launched one year ago, and adoption has climbed to 50%.
- Lightning Network is growing everyday. Merchant adoption is coming along, as payment processors like Coingate and Globee accept Lightning payments.
- Bakkt will provide a Bitcoin-backed futures contract, in conjunction with the International Contracts Exchange.
- Although rejected, the recent Bitcoin ETFs proved how Bitcoin has matured, and also set the stage for future ETF applications.
Between all of these positive signs, and the price slowly rebounding, it’s possible that the bear market is coming to an end, although the cryptocurrency ecosystem is unpredictable and, as some claim, the cryptocurrency could still be bottoming out.