No talk about financial services or the state of the economy could be complete without mentioning Bitcoin (BTC). The rise of cryptocurrency has taken the mainstream by storm – something that those in the know have anticipated since as early as 2013. Despite the trepidation by certain economists, there is no denying how strong Bitcoin’s position is – and how it expects to progress in the future. How is Bitcoin performing, especially compared to potential competitors in the cryptocurrency market? And most importantly, is now the perfect time to buy Bitcoin?
Bitcoin Stocks Looking Up
Trading anything can be volatile. This can be mitigated against by taking in all the information available about a certain commodity, how it has performed in the past and how it is likely to perform in the future. Bitcoin, for example, has had a volatile past – but looks to be on the rise. For the first time in eight months, the cryptocurrency is indicated as being bullish. Does this mean that it would be a good time to get trading with Bitcoin?
Is It a Good Time to Buy Bitcoin?
The news that Bitcoin could be about to experience a bullish comeback arises from its position on the MACD histogram, a famous trend checker for reversals and momentum. Moving above the zero line on the histogram changes the prognosis from bearish to bullish, which is good news for traders. Bullish stock is such that it is expected to increase in value over time. So if Bitcoin is deemed to be bullish, then it could be deemed to be a very good time to buy.
Bitcoin is a strong investment due to the low inflation risk involved. Currency is controlled by the government of the issuing country, so the decentralized nature of Bitcoin means that there is no centralized regulation. This means that there is less of a risk of a sudden inflation. This also means that there is a lower falling risk involved with Bitcoin. With a bullish outlook and a steady growth, now could be the perfect time to trade in Bitcoin.
Bitcoin in general offers a simpler and easier way of trading than other currencies – which helps explain why blockchain technology on the whole is improving. The trading past of Bitcoin also shows that it is a strong contender as a trade. As Bitcoin’s popularity improves, the trends of reversals and momentum will paint a better picture for the future. As the wave patterns for Bitcoin become more apparent over time, the volatility will likely subside and traders and investors will back Bitcoin as a viable trade. The blockchain industry is set to take off fully within the next 10 years and Bitcoin and its ilk is a good place to start.
The performance of Bitcoin is tantamount to the performance of the entire cryptocurrency industry. Its success represents a promising new future for blockchain technology, while any blips render the potential trader more cautious. But, all trades have a level of risk. The recent performance of Bitcoin shows that this is one risk that might just pay off.