Is Bitcoin Skyrocketing a Rebound or a Reversal?

At the end of the World Cup, the digital currency ushered in their carnival. On July 15, the dat that the World Cup ended, Bitcoin began to rebound. We can see from the live market of bitcoin chart in the past 7 days that at around 1:30 am on July 18, Bitcoin suddenly rose sharply. In an hour, the increase was over 10%, and the market value increased by 10 billion US dollars. The current price of Bitcoin is $7608.05.

According to market analysis, the United States has a large number of favorable policies recently. These favorable conditions have also led to the large amount of funds entering the market to drive the cryptocurrency market in the global market to pick up. For example: Coinbase, the largest digital trading platform in the US, is licensed by the government. The world’s largest asset management company shows interest in Bitcoin, FSB support for Bitcoin, etc.

Bitcoin has gone through two phases in the past seven days, the first phase has risen from $6300 to $6700, and the second phase has risen from $6700 to the current $7600, with a total increase of nearly 20% (data from the live market of bitcoin chart). You may think that the bear market is turning to a bull market and the market is reversed.

Many Bitcoin loyal fans hope that with the injection of bitcoin into the mainstream financial services industry, bitcoin price will rise back to the level of December last year, or higher. The current brilliant btc trading platform us now gives them the confidence.

However, some people think that the short-term rise and fall does not represent the future of Bitcoin. From a general trend, Bitcoin is still in the downtrend channel. Liang Dong, director of the Zhongxingcun IoT blockchain laboratory, also believes that the short-term rise does not necessarily mean that the bull market is coming. Bitcoin’s pressure line is around $9,000. Only by breaking this point will there be a possibility of further increases.

However, Zhao Changpeng does not think so. He said in an interview:”It is a wrong conclusion that we judge the entire market is declining. Up to now, ICO financing with a value of 14 billion US dollars has been successful this year, attracting funds four times faster than in 2017. Moreover, many countries have issued regulatory rules that positively support the blockchain industry, changing from an ‘uncertainty’ attitude to competing with each other. These favorable policies have also allowed many financial institutions to enter the market. “

But I think he ignored a very important point. Although there are many ICO projects this year and the funds raised are also proliferating, it is precisely because of this, many fraudulent ICO projects emerged. According to the data, at least 80% of ICOs are fraudulent, and 10% lack substantive content. These ICOs will eventually die, which means that the regulation of the blockchain industry will become stricter in the future, and the road to development of blockchain will not very smooth.

Therefore, the view raised by Zhao does not indicate that Bitcoin has reversed. The short-term growth of Bitcoin does not mean that the bull market is coming. It can only be said to be a rebound rather than a reversal.