Bitcoin is rising despite yesterday’s correction.
The cryptocurrency fell to $ 30,000 yesterday as buying and selling on platforms like Coinbase increased rapidly, analysts said. This came after Bitcoin hit a high of $ 42,000 late last week. While Bitcoin is not yet clear in the short term, analysts are starting to believe it has bottomed out after major technical signs emerge.
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On-chain trends for Bitcoin remain bullish
Aleks Larsen, a venture investor at Blockchain Capital, noted in a recent extensive Twitter thread that on-chain fundamentals are still going strong for Bitcoin.
The investor commented on Bitcoin’s on-chain trends as follows:
“6 / Looks pretty good for growth rates in the HODLer segment! Nice and steady growth for BTC via the bear market. Retail is starting to grow, but for most of 2020 this was institutional – fewer additional owners, but much larger position sizes. “
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 USD per day in the chain. ETH nearly $ 4 billion. This does not include tokens or stablecoins. Stablecoins alone accounted for a transfer volume of over USD 15 billion in the chain in the last 24 hours. Ethereum moves over $ 20 billion in assets every day, the majority of which is digital USD! “
Analysts say on-chain trends show the true nature of the Bitcoin market as opposed to short-term price trends.
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Overall trends positive
In addition to the on-chain data, the economist and cryptanalyst Alex Krüger also addresses the market trends and says that Bitcoin remains largely optimistic:
“Raw demand. Notably, Grayscale reopened private placements in the late afternoon. Outstanding rates 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 wash off excesses before continuing. “
However, the investor noted that there are a number of factors that drove BTC down in the short term.
- A rebound of the US dollar against foreign currencies
- Due to the extremely high level of market financing, the market was overwhelmed
- Strong sales pressure from miners, some long-term holdings, and others
- Scott Minerd, CIO of Guggenheim Investments, announces a short-term bearish view
- Tether fears
- And renewed regulatory fears
Recap $ BTC
-USD & real interest rate reversal (temporary IMO)
-heavy sale: miners, long term owners, macro and CTAs
-Guggenheim speaks price down (wants to buy lower)
-JP bearish (bearish since 18K)
– hold fears (again?)
– renewed regulatory fears (some are easily frightened)
– Alex Krüger (@krugermacro) January 12, 2021
Related Topics: 3 Bitcoin On Chain Trends Show A Macro Bull Market Is Brewing
Featured Image from TradingView.com’s Unsplash Chart Price Tags: xbtusd, btcusd, btcusdt Bitcoin recovered from 25% crash yesterday to $ 35,000