Although the last few months have not been favorable for digital currencies, most investors are waiting for what will happen in the coming months since everything points to Bitcoin is digital and the other cryptocurrencies rising in value.
The feeling that is born in investors to maintain and accumulate the greatest amount of CRYPTOCURRENCIES in their wallets will be what will give the result that they most long for.
It is not profitable for any investor to see their capital decrease, this is the curious thing about cryptocurrencies that although their value decreases, an upward trend will always be generated that will recover the price in an incredible way.
What is an uptrend?
In the jargon of financial markets, terms are often generated that can sometimes be new to many people, which is why it is important before investing to know the basic terminology.
Normally, trends are usually divided according to the period in which they are generated and according to this they could be classified as bullish, bearish and lateral or null.
When we refer to an uptrend, it is usually known as a Bull Market, where positive market expectations allow the demand for digital currencies or any other financial asset to exceed their supply.
These types of trends usually occur after periods of great uncertainty and extreme lows, since investors have begun to have doubts regarding the displacements of the curve of a certain digital currency.
After this period occurs, unexpected highs are usually generated that can last relatively short periods or even several days, it all depends on the attitude and demand of investors.
Downward trends usually indicate corrections in the development and evolution of digital currencies where more than one usually acquires the largest amount possible due to its low cost, thus the long-awaited upward trend will generate the diversification of investments.
This trend is usually subdivided into three fundamental stages and which are: accumulation, participation and distribution.
During the accumulation phase, investors tend to participate in the digital financial market with caution, due to how volatile and risky it is, but still trust in the profitability it generates.
They engage with safe and determined steps where the acquisition of digital currencies is the main objective.
In the participation phase, more investors consistently join and deposit the trust that had somehow vanished, thus managing to increase the prices of digital assets.
In the last stage of this upward trend we find the distribution phase, it is the moment in which investors and traders usually evaluate the market through fundamental and technical analysis, concluding that it is the right time to sell their digital currencies.
Traditional and digital financial markets are usually very similar in terms of the trends that occur in their various trajectories, only in the case of cryptocurrencies they are usually much faster or more susceptible to change.
These drastic changes are known as volatility and it is what has made cryptocurrencies have extreme variations in such short periods of time.
Bitcoin’s best moments
The importance that cryptocurrencies have had in the first place Bitcoin is remarkable, not only in the financial market but also in terms of technology.
If Bitcoin is analyzed chronologically, there have been several moments where it has benefited notably, where its impact has contributed to the improvement of its price, such as in market capitalization and positioning.
Among some of the most important valuation moments in terms of bullish trends that Bitcoin has had are the following:
Its first transcendental moment was the price increase in 2013 when it reached a value of 266 dollars per unit.
Later in 2014, it exceeded the barrier of 1,000 dollars, achieving great commotion in the market, a price that later collapsed after the exit of the market of the largest Cryptocurrency Exchange Mt. Gox.
In December 2017, it managed to increase its value to a historical maximum in a period of less than 24 hours of 17,900 dollars.
In January 2021, it reached a new historical maximum that reached USD 34,600 per unit. This was one of the best years for Bitcoin during its thirteen-year history, breaking the $66,000 barrier.
All these surprise rises in cryptocurrencies have led to a greater number of investors joining crypto projects, which today are waiting for a new bullish phase.
For Bitcoin, although it has been complicated, it has not been impossible to overcome its valuationthus managing to distribute large sums of money in favor of all those users who placed their trust in crypto investments.