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What is a Bitcoin Bull? ⛔The 3 MOST CRITICAL indicators

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A Bitcoin Bull is an investor who believes that the price of a Bitcoin can potentially rise to $1 million in the long-run.

What is a Bitcoin Bull?3 crucial indicators

A Bitcoin Bull is an investor who believes that the price of a Bitcoin can potentially rise to $1 million in the long-run.

Bitcoin prices went from a few cents in 2010 to an all time high of $$69,000 in August 2021.

 

 

What is a Bitcoin Bull?

A Bitcoin Bull is a type of cryptocurrency investor who believes that the price of Bitcoin will increase in the long-run because due to user adoption.

Therefore, any downward trend is a price correction.

 

A bull is ultimately an investor who is bullish in the mid-term to long-term.

number of active bitcoin addresses 2023
The number of unique addresses that were active in the network either as a sender or receiver. Only addresses that were active in successful transactions are counted. (Source: Glassnode)

 

Why are the bulls important?

In all markets, there are several layers of investors.

Those who cash out at small profits and those who are in it for the long-term.

Bitcoin prices are based off of spot prices and not leverage.

So the bulls are not only acting as price cushion, but they also drive prices upwards through trading volume.

The bulls buy bitcoin and drive the prices even when market sentiment is low.

 

What do they know that you don’t?

Bitcoin is the most important cryptocurrency as it is not only the first but accounts for over 50% of the market.

 

Bitcoin dominance 2023
Bitcoin Dominance (Source: Coinmarket cap)

 

1. Bitcoin is king.

For a bull or any experienced crypto investor, Bitcoin is King

  • Bitcoin is the most dominant cryptocurrency with over 50% market cap
  • Bitcoin is what drives the cryptomarket prices and other blockchain projects. When Bitcoin goes up, the entire market will go up and when Bitcoin crashes. Therefore, when BTC crashes so does the entire market.

 

2. When to buy Bitcoin

Bitcoin is speculative, and prices are driven by hype.

A bull understands fully how bitcoin works.

  • That fiat (government issued currency) will lose value over time *
  • A Bitcoin bull buys the dips with hopes that the investment will eventually average out
  • Knowledge of the cryptocurrency market cycle gives Bitcoin bulls an edge on when to cash out versus when to buy.

Since, the Covid-19 pandemic, inflation rates have skyrocket over 40% in many countries worldwide

 

3. They Believe that Bitcoin is the future of money despite its current shortcomings

It is common belief among Bitcoin bulls that it will replace their local currency but will ultimately be adopted by the rest of the world.

Therefore, it is this belief which will drive adoption in the long-term.

 

4. The digit gold of the internet

Bitcoin has been referred to as the digital gold of the internet and was a popular hedge against inflation during the covid-19 pandemic

While gold has been a currency for thousands of years, Bitcoin is becoming an interesting investment option for gold investors.

However, unlike gold, Bitcoin has a limited supply.

 

Bitcoin bull vs Maximalist

While a Bitcoin Bull just believe that prices will increase in the long-run,  a Bitcoin maximalist believes that Bitcoin will replace the official currencies of countries.

A Bitcoin maximalist, believes that one satoshi, will be worth $1 (1 Btc= $1,000,000)

 

Bitcoin bull vs a bear

A Bitcoin bear believes that Bitcoin is like the Myspace of social media or the Nokia of smart phones.

In other words, while it does have first mover advantage, it is not scalable in its current technical state.

Bears tend to bet more on altcoins and cash out during altseason in the cryptocurrency bull market.

 

CONCLUSION: Is bitcoin the next Tulip bubble?

Bitcoin critics (or bears) have compared the speculative nature of Bitcoin to the dutch Tulip bubble.

(In the mid 1600s, a tulip bulb was worth a mansion).

The bears argue that Bitcoin does not have fundamental value.

However, what the Bitcoin has which the tulip bubbles don’t is blockchain technology.

 

If you found this article interesting and would like to learn How safe is Bitcoin as an investment CLICK HERE

Otherwise CLICK HERE Learn how safe is crypto trading

 

 

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