The price of Bitcoin (BTC) dropped to $ 3,700 for a short period on March 12, then at $ 4,970. On March 13, prices recovered from the main downtrend, ending the day at $ 5.563. This shows an impressive price return because it rose 11% in a short amount of time.
The recent market turmoil, both in traditional and crypto markets, has raised questions about the evolution of prices for Bitcoin, as well as its crucial network features. Here are four keys that indicate if there is hope that the price of Bitcoin rises amid global instability.
The stock-to-flow model remains intact
Looking at the stock-to-flow model which is a forecast model of Bitcoin prices based on supply (stock) and new production output (flow), the actual price of Bitcoin on Thursday (12/03) is below the forecast line but within the expected threshold.
This is not the first time that the price of Bitcoin has fallen below the 365-das price model, as it has been for six months (between mid-November 2018 and mid-May 2019), which is different from estimates since then.
In a tweet on March 13, PlanB's stock-to-flow analyst said that "bitcoin moves well around the value of the model".
Accordingly, according to PlanB, the estimated price does not change given the closeness of the halving event. The 365-day average model currently estimates a price of $ 8,426 on the estimated time for halving which is predicted to occur on May 9, 2020.
Signal Bitcoin NVT
On Sunday, the price of Bitcoin hovered around $ 5,400, while the realized price on the NTV signal was $ 5,596, indicating that the asset was in the buying zone after falling prices on Thursday. At present, the NTV signal is at 49.5 with 45 representing the oversold scenario.
For traders who are considering short-term purchases, the model suggests that there is an opportunity to get quick profits based on realized prices and a 200-week moving average. Considering the 200-day moving average price of $ 8,587, Bitcoin shows room to grow in the long term and the upcoming halving in May adds to the narrative for this crypto asset.
Bitcoin Hash Rate Rises
The hashrate level, which is the computational power needed to confirm transactions on the Bitcoin blockhain, has been reported to have declined since March, after reaching historical levels. But since March 11, the hash rate has increased slightly, even after the drastic decline in the price of Bitcoin on March 12. On March 13, the hashrate was close to 110.38 trillion hashes per second. Rising hashrate levels usually lead to higher bitcoin prices rising.
Transactions surged on March 12
The number of Bitcoin transactions jumped on March 12 as usual when drastic changes occurred. There was also a surge in the number of Bitcoin sent in USD on March 13, and the number of daily transactions dropped to the end of February at around 277,000 transactions, maintaining a regular pattern since the beginning of the year.
Because comments surrounding investor confidence in Bitcoin raise doubts, the underlying Bitcoin network features express consistency even though the entire market is plagued by turmoil and uncertainty.
Looking ahead, with such a level of fear in the market, investors or strong institutions might be able to look for opportunities to buy BTC at cheap prices that aim for long-term positive results.
Nevertheless, the COVID-19 pandemic throughout the world can continue to cause short-term liquidity problems in the market and ultimately cause severe economic conditions as a result.
Even so, there is no certainty whether Bitcoin will get worse or can experience price increases, as it is known that BTC has a high level of volatility and this certainly can be used for Bitcoin users. In addition the halving event is also predicted to make the price of Bitcoin skyrocket.
Bitcoin Bussiness Crypto Currency Cryptocurrency Investment Marketing
