Bitcoin rips higher despite yesterday’s correction.
The cryptocurrency plummeted as low as $ 30,000 yesterday as buying and selling soared on platforms such as Coinbase, analysts said. This came after Bitcoin peaked at $ 42,000 late last week. While Bitcoin isn’t clear yet any time soon, analysts are starting to think the bottom is in after the main technical signs appear.
Chain trends are still bullish for Bitcoin
Aleks Larsen, a venture investor at Blockchain Capital, recently noted in an extensive Twitter thread that the on-chain fundamentals for Bitcoin are still strong.
Commenting on the trends in Bitcoin’s chain, the investor wrote:
“6 / Looking good for growth rates in the HODLer segment! Nice and steady growth for BTC via the bear market. Retail is starting to come in, but for most of 2020, this has been institutionally driven – fewer additional holders, but much larger positions. “
He explained that Bitcoin is currently moving $ 7 billion a day, which shows the value of the network. Ethereum is also still heavily used:
14 / BTC moves $ 7 billion a day on the chain; ETH nearly $ 4 billion. This does not include tokens or stablecoins … and stablecoins alone accounted for over $ 15 billion in on-chain transfer volume in the last 24 hours. Ethereum moves more than $ 20 billion in assets per day, most of which are digital USD! “
Analysts say trends in the chain show the true nature of the Bitcoin market, as opposed to short-term price trends.
General trends Positive
Tapping into market trends aside from on-chain data, economist and crypto analyst Alex Krüger says Bitcoin remains bullish to the most extent:
“Rough question. It was notable that Gray Shades reopened private placements late in the evenings. Outstanding interest fell ~ 20% and funding rates are now flat to negative. Bullish. This is still a bull market. Bitcoin heats up very easily and needs to flush out excesses before continuing. “
However, the investor noted that there are a number of factors that drove BTC down in the short term.
These include, but are not limited to:
- A rebound of the US dollar against foreign currencies
- Due to the extremely high market funding, the market was overloaded
- Heavy selling pressure from miners, some long-term holdings and others
- Guggenheim Investments CIO Scott Minerd announces a bearish short-term view
- Tether fears
- And renewed regulatory concerns
$ BTC resume
-USD & Real Rate Reversal (Temporary IMO)
-Heavy Selling: Miners, Long Term Holders, Macros and CTAs
-Guggenheim talk price down (want to buy lower)
-JP bearish (bearish since 18K)
-Tether fears (again?)
– renewed regulatory fears (some fear easily)
– Alex Krüger (@krugermacro) January 12, 2021
Related reading: 3 Bitcoin On-Chain Trends Show A Macro Bull Market Is Brewing
Featured Image from Unsplash Chart from TradingView.com Price Tags: xbtusd, btcusd, btcusdt Bitcoin Just Recovered to $35,000 After Yesterday's 25% Crash