#CryptoReboundStrategy

Bitcoin’s price has been on a roller coaster ride since it first debuted in January 2009, but the long-term trajectory has been higher — “up and to the right,” as they say. Bitcoin ushered in the age of cryptocurrency, but it took quite a while before the public sat up and took notice.

Still, in little more than a decade, cryptocurrency, and in particular, Bitcoin, has become one of the most exciting trading opportunities in a long time. Bitcoin trading has created millionaires, though given that persistent rise since its debut, plenty of traders would have done fine just holding — or HODLing — on for the ride, as many long-term bullish owners have done.

Despite the long-term rise, Bitcoin has been dogged by periods where it’s fallen precipitously. The most recent has been from November 2021 through 2022, when the prospect of rising interest rates and reduced liquidity in the financial markets sent Bitcoin’s price much lower.

Bitcoin was unleashed in the months after the global financial crisis obliterated economies. It was created by a mysterious individual or group known as Satoshi Nakamoto, and early proponents touted the currency’s promise of moving monetary policy out of the hands of governments and central banks and into an autonomously managed system.

Bitcoin famously has a maximum of 21 million coins that can ever be created. In the face of this fixed supply, an ever-increasing demand can send the cryptocurrency soaring. Given these dynamics, speculators have rushed into the space to take advantage of the anticipated price appreciation.

The price of Bitcoin is notoriously driven by sentiment. When the market shifts to its “greed” phase, Bitcoin soars amid the utopian promises and speculators dismiss the risks of an asset that generates no cash flow. In the “fear” phase, Bitcoin’s price seems to find no traction, as sellers push its price lower amid bad news or general market malaise.