Bitcoin on-chain velocity over 600%
Bitcoin had a tumultuous 2020. However, the losses of the recent price collapse are gradually being recovered, with prices now increasing gradually over the past few weeks.
According to the report Arcane Research's latest, Bitcoin has very high volatility and this has affected its trading volume. By a 7-day average, the volume of Bitcoin transactions has fallen back. Interestingly, even with this latest plunge, Bitcoin transaction volume continues to be higher than the 2020 average.
Daily real volume of Bitcoin | Source: Arcane Research
In most cases, a rise in price along with a falling volume is a bearish sign. However, in the case of Bitcoin, the volume of transactions continues to be higher than the average indicating that there is still a possibility of price increase.
Bitcoin network speed | Source: Arcane Research
Interestingly, BTC in the next few days could be a lot better than the price action a few weeks ago. According to data provided by Bytetree, Bitcoin's on-chain speed has skyrocketed, helping to strengthen King Coin's bullish sentiment. As reported by Arcane:
“Velocity is used to measure the rate at which Bitcoin moves over the network. Velocity of 600% means that coins move 6 times per year. Historically, Bitcoin investors make money when the network speed (12 weeks) is more than 600%. ”
Bitcoin network speed has been lower than 600% since August 2019 but over the past week, it has finally surpassed this level. Considering historical precedents, this is a signal of price increase in the near future, allowing BTC to fully recover the losses incurred in the March 12 collapse.
BTC / USD | Source: TradingView
Over the past 2 weeks, Bitcoin has increased by almost 40%. While this may not make much sense when Bitcoin actually crossed the $ 10K mark a few weeks before the incident, figures like on-chain velocity suggest that bulls will gain an advantage in Next few weeks.
'Index Bitcoin's fundamentals have improved since 2017’
According to trader MMCrypto, now is a good time to buy Bitcoin, since since the all-time high in 2017 when the price hit $ 20,000, BTC's basic indices have improved, i.e. the hashrate has risen. Significantly increased, the number of miners and developers increased. Besides, the traditional financial system is becoming more and more flawed.
Is TODAY a good day to buy #Bitcoin?
YES, here is why ...
- MMCrypto (@MMcrypto) March 28, 2020
“Today is a good day to buy Bitcoin? Yes and this is the reason ”
Earlier this week, the US Federal Reserve announced its decision to print $ 6 trillion to bail out businesses and provide Americans with $ 1,200 monthly checks to support them during the pandemic. Corona.
‘6 trillion dollars from the Fed there will be no buying power’
In the recent 'Off The Chain' podcast by Anthony Pompliano, the famous Bitcoin hater Peter Schiff stated that the newly printed USD would not have purchasing power. The printing of money this time will be much bigger than the 2008 crisis and the future consequences will be more difficult.
Earlier, in his tweets, Schiff affirmed that among the other causes of the current recession, the Fed's money-printing plan in 2008 caused the current financial crisis that had not even begun. .
At the time of writing, Bitcoin is trading at $ 6,257. Trader 'Bitcoin Macro' expects BTC to begin to return below $ 6,000 soon.
Are you plebs ready for $ BTC to hit sub $ 6k?
- Bitcoin Macro (@BTC_Macro) March 28, 2020
"Are you ready to receive Bitcoin under 6K?"
You can see the price of BTC here.
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to AZCoin News
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