The last few months, it is not a very good time for Bitcoin. The entire crypto market is controlled by Bitcoin and it is not going to keep going down. Most of the time the market movement happens based on good and bad news around Bitcoin. If there is good news, the price goes up and if there is bad news the price goes down but unlikely the market had been more volatile than earlier. The price of Bitcoin would see an upward movement only if there is some good news or some attractive news related to crypto.
Crypto markets are very complex to understand, unlike the regular stock market. There are several parameters that can keep the price high or low based on the demand and supply. Predicting the market trend is also highly challenging. It isn't impossible though because there are a few things that can affect the market trend and the first coin to get affected by them is Bitcoin. People either do a panic sale or book profits to bring the market down.
Underlying technology is strong
Bitcoin is backed by blockchain technology which is very strong. One of the biggest reasons why people are attracted to Bitcoin is not only for the fact that it is a cryptocurrency but it is also for the concept or the technology with which Bitcoin was created. Based on the core concept, people created several other cryptocurrencies with the same Blockchain technology by tweaking the idea a little bit.
The current market trend is not going to be forever and many people who are in the crypto space would already know the potential of Blockchain technology and in order to keep it on track the core cryptocurrency which is Bitcoin would definitely keep going up and down based on the market trend. There are several use cases for Blockchain technology in the real world and even some governments have started adopting this technology. With this strong underlying technology, Bitcoin would keep going for several decades more until a new technology is available.
Downtrend is not forever
We have had several down trends in the past and people always panic and sell their assets when they see the downtrend. There are many people who lose their money because of panic selling and there are a lot of people who also consider the downtrend as an opportunity and purchase Bitcoin and trade them.
If we look at the history of Bitcoin, we have seen several instances where the price of Bitcoin would go down absolutely and it would stay like that for several months or even years. But there will be a time when the market would recover and there will be a drastic movement toward the positive side. When there is such a movement people will then start discussing a bubble break which is very common. For someone who is new to Blockchain and Bitcoin would find this hard to understand but people who are in this crypto world for over 4 or 5 years would easily understand how this all works and they would be the first person to invest and reap a profit out of this.
If you like what I'm doing on Hive, you can vote me as a witness with the links below.
Vote @balaz as a Hive Witness
Vote @kanibot as a Hive Engine Witness
