Bitcoin may have a fluctuation in the coming week to archive USD$9200 next week
Last week predicted the bitcoin price will be back to above USD9000, it has been tested as correctly. We predict Bitcoin may have a fluctuation in the coming week to archive USD$9200 next week.
Now let’s take a look at the reason for this potential increase.
Daily trading volume — Bitcoin
Bitcoin had the fluctuation last week, which went up to 346K at a highest point and went down to 284K in the bottom. The daily trading volume has been on a slow increase since February 2018. It shows the core value of Bitcoin and is the fundamental support for Bitcoin price.
Daily trading volume — Ethereum
Ethereum’s trading volume had reached 698K last week and still was more than 615K, had a better performance than Bitcoin’s.
Bitcoin has had a new higher hashrate last week, the highest was 126.1EH/s, the newest was 110.4EH/s. Computing power (aka mining hashrate) is a key metric as it illustrates the network transactional demand.
Active & New Address
The active address has had a broad fluctuation last week, the highest was 705K, the lowest was 519K. This index has shown a good sign to the increase.
Transaction Volume on Bakkt
Last month Bakkt had a 39.7%decrease on its transaction volume, to USD88Million, implied the less institution fund was entering into the market.
USDT had a relatively large fluctuation last week, implied an increased long/short ratio and limited fund-in. Besides, USDT has became a major cryptocurrency in BTC trading, with a 70% of all types of cryptocurrencies other than BTC.
Google Search Trend
The public enthusiasm showed a good performance last week from the Google Search trend.
Fear & Greed Index
FGI was 48, was at a Neutral sentiment. FGI looks at six different factors to score investor sentiment on a scale of zero to 100 — extreme fear to extreme greed respectively: market volatility (25%) + market momentum (25%) + social media trend (15%) + market survey (15%) + the ratio of Bitcoin in the market (10%) + Google trend (10%).
The newest long/short ratio was 1.45, the long position has dominated, showed a strong consistence in increasing trend, we need to be careful about this sign. According to past experience, if the ratio is too high it is highly likely that we will see a market correction.