A new report suggests that the bear market of cryptocurrencies sinks and goes through a phase of accumulation

According to various industry observers, sentiment in the cryptocurrency market has recently begun to rise. A new report now suggests that the bear market is fading away.

Is the cryptocurrency market coming out of its bearish phase?

In particular, the digital asset fund Adamant Capital recently released a report detailing how Bitcoin is currently experiencing a "significant accumulation", according to a blockchain analysis by Adamant Capital.

Moreover, the report also notes that the cryptocurrency market currently has strong parallels with the 2014-2015 bear market. This then gave way to a bullish trend, suggesting that the cryptocurrency market could accelerate for future significant price increases.

In fact, Adamant Capital notes that the company is proud to have "published [its] Bitcoin reports 2012 and 2015 during which time [they] perceived as a period of significant undervaluation. As such, he suggests that Bitcoin can be equally undervalued.

The report then predicts that the Bitcoin accumulation phase could see cryptocurrency trading in a $ 3,000 to $ 6,500 price corridor before a new bull market emerges and leads to further increases in price.

The report continues:

"During the accumulation phase, the market will evolve in a range: the weak hands, trying to get out of the market, make profits during times and thus create resistance, bottom of the range that ends up creating a floor in the room. "

Bitcoin will reach mass adoption in the next five years

On top of that, the report also explains how most traders have apparently left the current market. As a result, "agnostic" traders and long-term investors have spread, which may explain the recent low level of Bitcoin volatility.

In fact, the report notes that the 60-day volatility of Bitcoin has recently fallen below the 5% mark. This is particularly noteworthy since this barrier has not been crossed since the end of 2016.

In addition, the report also suggests that the millennial generation may be a determining factor in the future growth of the cryptocurrency market. More specifically, it is stated that no less than 93% of the millennia are wary of banks, which gives them many opportunities to adopt cryptocurrency. Moreover, this is also corroborated by the fact that a large part of Bitcoin's investors are millennials.

Finally, the report also argues that cryptocurrencies can become an important financial tool for risk management and provide a solution for hedging reserve assets and the portfolio. In the end, this also suggests that Bitcoin will be en masse in the next five years.

Source of the image: "Flickr"

Rasmus Pihl is a writer for the day's Toshi Times and an avid follower of the cryptocurrency sector at night. Rasmus holds a Bachelor of Marketing degree from the Gothenburg School of Business, Economics and Law and runs a Swedish marketing consultancy. Moreover, when he is not writing for Toshi Times, is not traveling, working or changing the world in any other way, Rasmus is most likely taken in postgraduate studies.