This crucial Bitcoin metric reached a high. But traders don’t seem to care

by Gordon James

Like most years, Bitcoin looks back at the year and is putting most of the blame on Bitcoin Cash for its slow performance. However, there are a few other indicators that are up, such as the number of Bitcoin ATMs being added, institutional money getting involved, and a Bitcoin-based ETF reportedly in the works. The world certainly isn’t ignoring the digital currency, but it seems like the market has been waiting for the next big catalyst in order to rally.

Bitcoin prices have continued to range between the high $800s and mid $900s since the start of 2019. At the time of writing, prices were just below the $800 mark. With this in mind, it might be a good time to step back and look at the life of Bitcoin over the past few months.

The number of transactions on bitcoin cash exchanges has reached the highest level in a year, according to data from CryptoQuant, a popular blockchain data analysis tool for bitcoin and other crypto-currencies.

The number of transactions on spot BTC exchanges has reached an annual high.

Check out the graphic

– (@cryptoquant_com) 6. July 2021

As the network reconfigured its complexity, bitcoin mining revenues skyrocketed. Analytics service reported that active miners are reaping the benefits of their rise, while most hashrates have fallen in recent weeks as China has imposed a strict ban on bitcoin mining in its country.

This decline in bitcoin on the exchanges is often seen as a very bullish sign for the price. However, the market didn’t seem to care, as the value continued to fluctuate in the $30,000 to $35,000 price range.

What is the future of bitcoin?

Price action is showing good strength and has found support at $33,000. However, the $35,000-$36,600 range has been problematic on several occasions in the past, and it is highly likely that price will encounter another rejection in this area and return to lower support levels.

Image: BTC/USD via TradingView.

The Relative Strength Index (RSI) is also showing strength and indicating further uptrend, but breaking through the $36,600 zone is key.

Volume is still down slightly, and an influx of volume ensures that the upward price trend will continue.

The 50MA is currently at $36,000 and a breakout above the 50MA and daily resistance would be very bullish for price.

What is the next step for EPF?

Ethereum is also doing well against the USDT and BTC pair. There is some resistance in the $2400-$2450 range, and it is likely that price could be rejected there.

The Bollinger Bands, a popular indicator to determine price action based on volatility and historical prices, also showed resistance in the same area, and a pullback to the 20MA is possible.

The Relative Strength Index (RSI), like bitcoin, is showing some strength, indicating positive price action in the coming days. In the short term, the $2300 area is a good LONG term zone as it provides local support on the 4 hour chart.

Image: ETH/USD via TradingView.

This crucial Bitcoin metric reached a high. But traders don’t seem to care

Overall, ETH is expected to move closer to $2,500 if BTC manages to remain stable.

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