Some numbers of trends indicating that Bitcoin price still has a bullish undertone
Yesterday, the Bitcoin price fell below $ 9,000 – an all-time low for more than a week. This caused tens of millions of dollars to be liquidated, rocking the bulls from their expectations of the upside-down. Still, many factors suggest Bitcoin can continue its uptrend.
#1: Bitcoin miners are continuing to push the hashrate higher
Bitcoin hashrate dropped after the Halving event in May. The Bitcoin Halving event led to a 50% reduction in miners revenue. As a result, many small mining companies were forced to leave the business.
Finance podcaster Preston Pysh wrote in the wake of the event:
“During the 2016 halving, the price went sideways for nine days and then had a 28% drop, and it took 100 days to get back to the halving price. Mentally prepare yourself for the efficiency cleansing and difficulty adjustment as the protocol prepares all passengers for launch.”
During the 2016 halving, the price went sideways for 9 days and then had a 28% drop, and it took 100 days to get back to the halving price. Mentally prepare yourself for the efficiency cleansing and difficulty adjustment as the protocol prepares all passengers for launch. pic.twitter.com/5dNcs0ZnJ1
— Preston Pysh (@PrestonPysh) May 12, 2020
Yet, due to what seems to be the summer rainy season in China and new mining hardware, miners have managed to recover rapidly. CoinMetrics reported earlier this month that the hash rate of the Bitcoin network is now back to pre-halving levels. This has resulted in the Hash Ribbons, an indicator that derives signals from the moving averages of the hash rate, from printing a positive signal.
Hash Rate “Recovery” looks like it may occur next weekend using the @PrestonPysh forecast technique!
The Hash Ribbon “Buy” signal also requires price momentum to improve from here, so could take a bit longer than a week.
May be the last HR accumulation zone for a long time. pic.twitter.com/JiFqMTrCbJ
— Charles Edwards (@caprioleio) June 20, 2020
The Hash Ribbons are important as they have historically flipped bullish before bull rallies.
Source: Charles Edwards
#2: Bitcoin holders are bullish than ever
According to Glassnode’s Rafael Schultze-Kraft, Bitcoin holders are focusing on holding BTC in the long term, and they are in bullish condition than ever. The more BTC holders hold, the less pressure there will be, and the price will increase.
1/ A thread showing 12 charts that illustrate #Bitcoin investor confidence and increased HODLing behavior.
Spoiler: This is long-term extremely bullish.
Let’s dig in 👇
— Rafael Schultze-Kraft (@n3ocortex) June 26, 2020
Besides, according to Schultze-Kraft’s argument, 61% of the circulating BTC has not moved in over a year. Moreover, the amount of BTC held by exchange wallets has decreased significantly in the past few years. Meanwhile, the addresses are considered BTC holders are adding to their positions, not selling.
#3: The U.S. dollar will devalue so how about Bitcoin price?
According to Rob Koyfman, CEO of Koyfin and a former Goldman Sachs vice president, Bitcoin could benefit if the US dollar depreciates against other currencies and assets.
“The Fed’s commitment to prolonged use of QE may represent a major turning point for the US Dollar. A break below [a close-by level] would confirm a major decline for the USD with implications across asset classes… USD weakness may be a catalyst for Bitcoin breaking out to new highs.”
At press time, Bitcoin price is hovering around $ 9,021, down slightly by nearly 2% in the past 24 hours.
You can also check Bitcoin Price here.
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