Bitcoin price analysis: BTC to head back to $10K support
Last week we recommended our readers not to chase Bitcoin’s price rebound as it remained uncertain whether the market would turn around sharply yet.
Our prediction turned out to be correct Bitcoin saw a sudden slump after its rebound. As usual, we will offer our take on market trends based on our analysis of fundamental data this week.
Daily trading volumes
The daily trading volume continued to shock. The trading volumes last week averaged around 350,000, showing signs of recovery and growth. However, the figure dropped back to its lowest level in five months over the weekend, which suggests that we might see a correction in the short run.
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 Average Hashrate
The hashrate for Bitcoin continued to rise and inched close to 92EH/s, indicating that miners are working diligently to process more blocks and meet the upcoming influx in transactions. It also shows that Bitcoin is more secure than ever. Computing power (aka mining hashrate) is a key market metric as it illustrates the networks transactional demand.
According to a recent report published by independent research boutique Fundstrat, bitcoin mining is still profitable at the moment, as the total cost to mine one Bitcoin using Bitmain Antminer S9 is around US$8,500. Yet, the cost of electricity to mine Bitcoins might outweigh its profits and put heavy selling pressure on Bitcoin if there is no price breakthrough in the near future.
Active & New Addresses
Active Addresses refer to the number of unique “from” or “to” addresses used per day. New Addresses refer to the number of addresses used for first-time transaction per day. The two figures remained largely the same last week.
Addresses containing a small amount of BTC
The indication refers to the number of addresses that contain 0.1 to 1 Bitcoin. Currently, there are 2,015,000 addresses that contain such an amount of Bitcoin. The rapid increase in this indicator is one of the criteria for determining the existence and length of a bull trend.
USDT Snapshot
USDT’s latest premium was at 0.28%. A small amount of over-the-counter funds went into the market.
Google Search Trend
Looking at the past-30 day Google search trend for “Bitcoin” and related terms, we found that the global search for “btc” has died down a bit but the interest is still there.
Fear & Greed Index (FGI)
FGI was at 41, meaning that the market still shows fear sentiments.
Looking towards Next Week
In sum, all the fundamental indexes have been showing signs of recovery but the overall market environment is still bearish. The drop in the daily trading volumes suggests that Bitcoin may face another the key price support at US$10,000. We therefore recommend readers not to chase the surge in the short run.
For the details of Bitcoin trading on LinkCoin, please contact Managing Director: Leon Tang, leon@yesbit.ca
