The cryptocurrency market cap just broke above $185 billion, according to CoinDesk. Whales and large institutions are discretely moving vast amounts of bitcoin and other cryptocurrency off exchanges. They’re likely planning to hodl them for the upcoming price surge.
Google searches for bitcoin have skyrocketed. More and more indicators that we’ve entered a bull run are taking place as we speak.
Right now, news in the space is developing so fast it’s hard for me to keep up and tell all of you.
This is one of the biggest indicators that things are about to switch direction.
There’s not enough confirmation yet to proclaim “The bull market is HERE!”. Nonetheless, I personally am feeling more and more confident that crypto is finally about to hit a healthy stride. And from there, a run.
If you haven’t bailed on your short positions on bitcoin or other crypto yet now might be the time.
We’re in free air until $5,500, where there’s very minor resistance. If bitcoin breaks that, we’re likely headed to $6,000+.
At that point, transaction fees will have increased and people will start to really feel the 11 transaction per second limit on bitcoin. Remember, there is a hard limit on how much bitcoin can be acquired at one time – so it’s an open question what will happen when we push past that.
Will the market correct, or will demand only increase as people realize there’s a hard cap on supply? The last time something like this happened, bitcoin went to almost $20,000.
Some caution however that bitcoin will likely retrace from $6,000, as bitcoin transaction fees will skyrocket to $20+.
I’ll be paying close attention, as I believe no one really knows what will happen if bitcoin breaks $6k.
I suspect people will go crazy for bitcoin when they find out and fully understand that there’s a 11 transaction per second limit on bitcoin.
What this transaction limit means from a practical perspective is this:
As more and more transactions occur on the bitcoin network, fees for using it and latency (slowness) increase. This is due to bitcoin’s extremely limited 11 transaction per second limit.
This will have one of two effects:
A. Bitcoin will retrace from $6,000 as people lose interest due to the high transaction fees.
B. People go crazy for bitcoin because they realize that transaction fees may only increase from here.
Either could be right, and depend entirely on your perspective. I’m a technical analysis guy, not a coder, and the TA indicates $6,000 is a massive area of resistance. So for me I don’t need to really worry about this, as I will just adapt based on the TA I see once bitcoin hits $6k.
Hope you enjoyed the latest market update!
I can say it with confidence now… TO THE MOON CRYPTO!!!!
Will Salisbury is the co-founder of Blockchain Decrypted and full-time cryptocurrency trader. He also hosts the Blockchain Decrypted podcast, and when he's not talking or writing about blockchain technology and cryptos, he likes to play games and relax in his home state of Michigan.
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