Three Reasons to Be Bullish of Bitcoin
Cryptocurrency HODLers have been hammered into oblivion in 2018, but the doldrums may be nearing an end for crypto enthusiasts.
First, let's take a look at the technicals. We are so ridiculously oversold, that we should be seeing at least a small relief rally like in April. But this coming rally may have more substance, since BTCUSD has been very stubborn about breaking the $6K handle (which is the lower anchor of the Fibonacci retracement levels) and maintaining lower prices. This is welcome news because otherwise, there is a vacuum zone from below to $3K. Additionally, we may be seeing an inverse head and shoulders pattern beginning to form on 30 min charts, but this may be wishful thinking.
Second, we are starting to see more and more good news. Exchanges are starting to include more cryptocurrencies, and gradually, large institutions and respected pundits are warming up to Bitcoin and cryptos in general. It also seems like the FUD from regulatory uncertainty is lifting as well.
Finally, if you look back historically, Bitcoin has gone through these cycles before, most recently in 2015. It seems to be a pattern where investors clamour onto BTC in a frenzy, only for the bubble to break. About a year to 18 months passes before their short attention span is piqued once more.
Now is definitely a good time to buy if you're planning to HODL long term, since there is still a chance we may test lower prices. For ideas on when to buy specifically, try using my indicators to help buy on dips.