It's Game On for Bitcoin and Cryptocurrency Markets, Softfork Be Damned!

While the possibility of a cryptocurrency doomsday still exists, the likelihood that a contentious softfork event will upend bitcoin is definitely declining. Over the last five days, the king of cryptos surged to a massive 46% profit. Simply put, if you had bought a single bitcoin in mid-July, you would have gained roughly $700 at today's market value.

But can this latest bitcoin rally be trusted? Inside the space of two months, we've seen the cryptocurrency jump from a high of nearly $3,000 to below $2,000. Yo-yo dynamics may be exciting for professional traders, but they usually give long-term investors a migraine.

While no one can guarantee the future, technical dynamics are supportive of a further leg up in bitcoin and other blockchain assets. First, the trading variance between the session "close" and the session high have dropped sharply since July 17. This simply means that traders are negotiating bitcoin near the upper spectrum of the price range, which therefore indicates bullish intent.

Second, in recent trading, high trading variances signaled future volatility. In other words, whenever the majority of bitcoin negotiations occurred near the bottom of the price range, traders were getting nervous. Bearishness eventually took over, resulting in panic selling.

So far, we're not seeing traders panic out of the bitcoin markets, nor out of other cryptocurrency assets. This tells me that traders overall are enthusiastic about the blockchain ideological split, and that a reasonable middle ground can be determined.

Instead of being the canary in the coal mine, the softfork may have been the buy signal for bitcoin and major blockchain markets.