According to Kraken’s research division, Kraken Intelligence, Bitcoin price could drop to $ 6,200. However, they did not mention specific time frames.
Bitcoin price will most likely fall to $ 6,200
The BTC price has rebounded significantly on June 1, bringing it to its highest level in several months at $ 10,432. But the Bitcoin price was quickly 10% off the next day, erasing all profits.
However, if the bulls attempt to break a key resistance level, there can be significant volatility in the opposite direction
Veteran trader John Bollinger described the move as a ‘head fake’ to alert traders about the potential for a potential price reversal. Moreover, according to Kraken Intelligence, Bitcoin is currently stuck in a giant pennant pattern that appears from Bitcoin’s all-time high of nearly $ 20,000. If BTC fails to break above its upper trend line with a decisive break above $ 10,000, it is likely to regain its multi-year support level of $ 6,200.
Source: Kraken
4/ However, a jump in volatility may be around the corner.
Historically, the mempool transaction count has served as a leading indicator of $BTC volatility; on May 21, #Bitcoin’s 7-day average mempool hit its highest level in more than 28 months. pic.twitter.com/Rv3Q9unRpI
— Kraken Exchange (@krakenfx) June 6, 2020
Regardless of whether the Bitcoin price goes up or down, Kraken Intelligence expects the first month of summer to enter the entertainment market participants with a series of substantial gains. Historically, June tended to be the third most volatile month for Bitcoin prices. Its average profit stands at 14%.
In 2019, the BTC price reached an annual high of $ 13,890 on June 26 before rising to $ 10,315 the next day. Considering the importance of Bitcoin’s current technical setup, there is a good reason to believe that this June will be so chaotic.
The average cost of a single Bitcoin transaction has plummeted
Over two weeks ago, on May 20, the average cost of a Bitcoin transaction was $ 6,647. That’s the highest average fee in nearly two years they’ve not reached since July 2018. That means, since May 20, the average Bitcoin transaction fee has dropped by 83.7%.
Source: Bitinfocharts
However, according to Bitinfocharts, the average transaction fee of Bitcoin reached its lowest level since April 28, with the current rate of only $ 1,083.
The reason for the soaring Bitcoin transaction fee is the Bitcoin Halving event. Although 80% lower than May 20, the average Bitcoin transaction fee is currently much higher than at the beginning of the year. On January 1, the average cost of the Bitcoin network was only $ 0.287 to send a Bitcoin transaction.
That means today’s figure is still up 277% compared to January 1. But if the current downtrend continues, the average transaction fee may return to the level at the beginning of the year. Indeed, just two weeks before the transaction fee increased to today’s standard; on April 12, the average transaction fee was $ 0.39.
Read more:
- Even After A Harsh Rejection At $10,500, Bitcoin Price Is Still Up More Than 160% From The March Lows
- Bitcoin Price Can Reach $100,000 And Remain Stable There If $90 Million Worth Of BTC Is Absorbed Every Day