Bitcoin was down nearly 20% to around $ 33,000 on the morning of January 11 from an all-time high of $ 42,000 reached the day before. The cryptocurrency market, as well as bitcoin's market capitalizations, fell short of their much-celebrated milestones above $ 1 trillion and $ 700 billion, respectively.
Since then, the top crypto asset has shown signs of recovery, having gained 13.31% in the last 24 hours to trade at around $ 39,300 at the time of writing.
While others speculate that Bitcoin might be nearing the end of its bull run, others are taking this opportunity to buy the dip and hoard more assets at a cheaper price.
A report Posted by leading cryptocurrency rating service provider Weiss Crypto Ratings, it says that there are few factors showing that the bitcoin Bull Run is not over.
1. Bitcoin Pullback Expected After Multiple Rapid ATHs
Bitcoin has gained 78.05% in a month in which week after week it has registered new all-time highs. Weiss Crypto, among other analysts, predicted that this was to be expected, and indeed welcomed the pullback as an opportunity to buy the dip and allow new investors to enter the market before it takes off again.
“Even though Bitcoin has dropped around $ 8000 from its all-time high, we were trading at these levels just six days ago. Bitcoin has been gaining so fast lately that it's easy to lose perspective. "
Therefore, these types of bull runs caused by rapid price increases are not uncommon and are even known as irrational exuberance in traditional markets.
“And with the huge price increases there are strong setbacks. That is the history of cryptocurrencies; the great movements come with the exploration of new territories ”.
2. Bitcoin and the cryptocurrency market is maturing
Bitcoin's hash rate and mining difficulty are hitting all-time highs, indicating higher processing power and increased security for the Bitcoin network.
"That means that while we are seeing a small correction in the market, the strength and security of the Bitcoin network are all-time highs."
Furthermore, bitcoin's bullish action is based on the value attached to its network, which will only strengthen in security and value over time, especially with increased adoption. The same applies to Ethereum 2.0, whose recent release shows that the network will advance in strength and functionality.
3. Institutional investments
Institutional investors have been credited for accelerating the bitcoin rally. Partnerships, crypto regulations, and Bitcoin investments from companies like Paypal, MicroStrategy, and Square have inspired more confidence in the crypto market. According to Weiss Crypto, these are all signs of a maturing market with enormous growth potential.
"Focus on the growing data-driven fundamental case pointing to much higher BTC from here in the long run."