Bitcoin has been through quite a roller coaster during this year. The digital asset had a decent beginning of the year followed by a huge bull run up to $13,970 by mid-2019. Bitcoin then started consolidating and it is still currently trying to set a higher low in the monthly chart.
Bears have been dominating the second half of 2019 and managed to push Bitcoin below $6,500 although the digital asset quickly recovered and bounced back up to $7,700 just a few days ago.
Bitcoin has been trading sideways for the last week but the bulls have managed to set a higher low at $7,067 and they are now looking for continuation above $7,700.
Bitcoin Fundamental Analysis is Positive
Bitcoin has asserted a lot of dominance throughout 2019. According to Coinmarketcap, Bitcoin’s dominance over altcoins grew from 51% at the beginning of 2019 to a peak of 69.9% in September and it is still currently at 68.24%.
Bitcoin is also up by more than 100% this year and the whole cryptocurrency market has experienced a significant increase in trading volume averaging $70 billion some months compared to a peak of $48 billion back in 2017-18 during the bull run.
It’s also quite clear that Bitcoin’s long term outlook is extremely positive and the digital asset is up by more than 10,000% since it started trading on exchanges.
According to some analysts, Bitcoin is currently in the accumulation phase of a bull market. This phase is the first before a bull run followed by the run-up, the distribution and the eventual crash or run-down.
Willy Woo, crypto analyst, and Twitter personality has stated several times that we are in the re-accumulation phase and that a bull run will happen soon. This would certainly make sense as Bitcoin is approaching a key event called the Bitcoin halving, an event that, historically, has been extremely positive for Bitcoin.
The last Bitcoin halving in 2016 made Bitcoin skyrocket and experience massive growth, however, it doesn’t necessarily mean that the digital asset will follow the same pattern again. Bitcoin already had a pretty big run this year going from $3,300 to $13,970 but the halving event might not be priced in just yet.