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This Unusual Bitcoin Adoption Metric Sets New ATH

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Bitcoin price is as healthy as ever, remaining over $10,000 for its longest stretch yet. Supporting that healthy price action could be an adoption measuring metric reaching an all-time high record. 

And with the metrics turning its trajectory upward, it could suggest that the cryptocurrency’s valuation will soon follow. Here’s why.

Bullish Bitcoin Price Action Potentially Fueled By Underlying Network Adoption

Bitcoin price action in 2020 may not have been as bullish as it was in 2019, but it is a lot healthier. After rocketing from the low $3,000 range to high $13,000s, the crypto asset required a cool off phase that has taken months.

It culminated with a deep crash on Black Thursday but has been on an upward climb since. A retest of the asset’s bear market bottom appears to have sealed the deal that bears can’t take Bitcoin price lower, and instead, bulls have been in control.

RELATED READING | MAX KEISER REPORTS BITCOIN “RELATIVE STRENGTH” IS GOOD AS GOLD

On the way up, it has been slow and steady, with several pauses for consolidation before continuation. Only recently has Bitcoin price began to pullback, turning bullish predictions back into calls for new lows.

But even the corrections on the way up have been fairly healthy, with very limited downside in the leading cryptocurrency by market cap. And it could all be due to how health the network’s growth is, and how steadily adoption is climbing. It has even taken a key adoption metric to a new record.

180-Day Moving Average: Daily Active BTC Addresses | Source: Santiment

180-Day Moving Average Of Active BTC Addresses Sets New Record High

According to the daily active BTC addresses moving their crypto assets to and from, the 180-day rolling moving average has now set a new all-time high. Individual daily activity still hasn’t outpaced the 2017 peak, but its very close.

RELATED READING | EXPERT EXPECTS BITCOIN “DECOUPLING” FROM STOCKS BUT NOT FOR THE REASON YOU THINK

The 2017 peak was also an unhealthy price spike, resulting in a three-year bear market. Although BTC addresses were higher then, there’s nowhere near the same level of FOMO or interest in the crypto space, yet numbers are trending nearly as high in terms of network activity.

bitcoin btcusd

BTCUSD Daily Price Action As Healthy As Network Adoption | Source: TradingView

But what does this mean for Bitcoin? It means that the “decoupling” from traditional finance that analysts are expecting could very well soon play out, simply due to Bitcoin as a technology and its exponential network effect.

So long as the network itself is active and growing, the value of the asset will grow in time as well. And when it does, like the 180-day moving average setting a new record, all-time highs in price may not be too far off in the distance.

Featured image from Deposit Photos, Charts from TradingView and Arcane Research



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Bitcoin price bounces to $33K but analysts say ‘it’s too early’ to call a bottom

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Cryptocurrency investors found little reprieve on June 22 as the price of Bitcoin (BTC) fell below $30,000 for the first time since January, sparking panic among less experienced market participants who have yet to experience a full market cycle. 

While Bitcoin has been under increasing pressure from multiple sources since early May, the most recent bout of selling has been largely attributed to capitulation by China-based miners who have been forced to abruptly shut down their operations.

Data from Cointelegraph Markets Pro and TradingView shows that after dropping to $28,800, Bitcoin price bounced back above the $30,000 level and currently trades for $32,600.

BTC/USDT 4-hour chart. Source: TradingView

The strong bounce came after comments from Brian Nelson, the current nominee for Under Secretary of the Department of the Treasury’s division on terrorism and financial crimes. Nelson said he was going to make the implementation of new regulations around cryptocurrency a priority if he is confirmed.

Miner crackdown in China sparks market turmoil

The pressures put on Bitcoin and the overall cryptocurrency market was highlighted by Élie Le Rest, partner at digital asset management firm ExoAlpha. Le Rest told Cointelegraph that “Chinese market participants have been massively selling during the past month.”

Le Rest also pointed to the “Grayscale unlocking schedule leading to more selling pressure,” resulting in some panic selling by the less experienced traders in the market.

Le Rest said,

“With newcomers in the crypto market seeing their profit and capital getting wipe out by selling waves, newcomers are taking their loss as they can’t stomach this much negative volatility anymore.”

Due to these pressures, Le Rest believes that the market could range in the “lower tranches of $25,000 to $35,000” in July, with the low volume usually seen in August having the potential to “accelerate this downside trend or build the upside trend.”

The upside case for today’s move was provided by David Lifchitz, managing partner and chief investment officer of ExoAlpha, who stated that the activity seen in the market on June 22 “seems to have drawn the line in the sand for BTC at $29,000 and Ether (ETH) at $1,700, given the swift bounce.”

Related: Bad call? Bitfinex bears closed a block of Bitcoin shorts before the drop below $32K

That being said, Lifchitz warns against throwing caution to the wind as the volatile nature of the crypto market makes picking a bottom notoriously challenging.

Lifchitz said:

“However, it’s too early to tell if this is “the” bottom or just a temporary floor before more downside. The lack of any upside catalyst (besides some contrarian oversold metrics) remains the biggest hurdle for cryptos to bounce back… Paging Mr.Musk, paging Mr.Musk.”

Altcoins see double-digit losses

The altcoin market followed Bitcoin’s lead on June 22 with a majority of tokens seeing double-digit losses as traders ran for the safety of stablecoins.

Daily cryptocurrency market performance. Source: Coin360

The price of Ether managed to rebound along with the price of BTC, helping erase a 15% correction and send the price back above $1,900.

Two tokens that managed to rise above the market turmoil and see positive gains for the day were Livepeer (LPT), which posted a 15% gain and Celo (CELO), which saw its price increase by 9%.

The overall cryptocurrency market cap now stands at $1.303 trillion and Bitcoin’s dominance rate is 47.1%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.