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Is Bitcoin preparing for the next leap?

Is Bitcoin preparing for the next leap?

  • 13 December 2020
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The price of Bitcoin is trying to prepare the conditions for its next leap, but the low volume of transactions has created an obstacle to further price growth. On the other hand, we still see an increase in active addresses in the Ethereum network. This has brought about much profit to the cryptocurrency cloud mining service companies.

According to CoinDesk, the price of Bitcoin, which traded in the range of $ 18,019 on December 11. It reached the range of $ 18,400 the next day. Over the past 24 years, the price of Bitcoin has fluctuated between $ 17,593 and $ 18,404.

At the moment, the price of Bitcoin is slightly higher than the 10-hour moving average. Bitcoin, meanwhile, is trading below the 50-hour moving average. These conditions indicate transverse price fluctuations. On December 11, the price of Bitcoin fell to a low of $ 17,593. Since then, we have seen a relative recovery, reaching $ 18,440.

Misha Alefirenko, the co-founder of Velvet Formula, says:

“If buyers do not enter the market soon, there will probably be a range of $ 16,900 to $ 16,400 over the weekend.”

According to market data, on December 11, we saw trading volume reach more than $ 1 billion in major exchanges. On December 10, the figure was $ 965 million. Usually, the volume of transactions on weekends is less than on other days. Last weekend, the average daily trading volume was $ 578 million.

Is Bitcoin preparing for the next leap?

What factors have contributed to the Bitcoin price balance?

A senior executive at Tellurian Capital said:

“Considering factors such as the rate of capital inflows by institutional investors, the withdrawal of profits by large grain investors, and more hedging measures by miners, we should say that the market is currently in an acceptable balance.”

The CEO of Global Digital Assets said in a recent statement:

“We see that companies like MicroStrategy, which are listed on the stock market, use leverage to create bigger opportunities in the bitcoin market.”

In another part of his speech, he said:

“There is a possibility that the low volatility trend will continue in December.” But next year, when the new annual budgets are set, I expect to see a sharp increase in demand for bitcoin from companies and investment institutions.”

Vinokourov, the director of research at the Cryptocurrency Brokerage Bequant said in an interview: “Macroeconomic debates and risks over the issue of choice may cause stock markets to slip, and as a result of this slip, we will see a strengthening of US dollar. He added:

“But given the performance of Bitcoin and other cryptocurrencies amid the outbreak of the Coronavirus and the US election, Bitcoin is expected to show similar resistance.”

Have active Ethereum addresses grown significantly?

Ethereum, which is the 2nd cryptocurrency in the crypto market, has traded in the $ 548 range on 11 December. In the last 24 hours, we have witnessed a 3% growth in this cryptocurrency. The number of active addresses in the Ethereum network has reached 379,249. At the beginning of this year, there were only 158,039 active addresses on the Ethereum network, which shows a growth of 140%.

Referring to the statistics, Vinokourov said in an interview that the new data showed that users were transferring their currencies from centralized exchanges to decentralized platforms, which created a lot of liquidity for the ecosystem.

He added:

Glassnode data on fees paid for deposit operations at centralized exchanges show that this figure rose from about 26 percent at the end of October 2017 to less than 1 percent on December 9, 2020. There is a lot of liquidity in the market. Therefore, we should say that DeFi tokens are still popular due to the recent market downturn.”

4 responses to “Is Bitcoin preparing for the next leap?”

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