Weekly Onchain Insights: Bitcoin vs Chainlink
The IntoTheBlock newsletter highlights weekly interesting data points about the crypto markets.
Every week the IntoTheBlock team publishes a newsletter that summarizes key data insights about the crypto market. Below is a quick summary.
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Bitcoin Price Analysis: $9,120.34 4am EST (07/17/2020)
The In/Out of the Money Around Price (IOMAP) that there are almost 2.7m addresses with Bitcoin positions around $9250 and another 770,000 with positions around $9500 signaling strong resistance at those levels.
Looking at the levels of support, over 1 million addresses had previously purchased a total of 695k BTC around $9,000. This is expected to act as support as holders in this range will attempt to remain profitable on their positions and push prices above this level.
By comparing these levels to those provided by technical analysis, we can verify buyers are expected to create support near the $9,000 range, while sellers will provide resistance around $9,300. The strength of these price ranges, as demonstrated by the magnitude in volume of these clusters, point to the possibility of Bitcoin trading range-bound and potentially moving strongly in either direction if prices breakout.
See Bitcoin’s In/Out of the Money Chart
This Week Big Movers
The last few weeks may have have been frustrating for traders in the cryptocurrency market due to Bitcoin’s volatility being at the lowest levels in over a year.
But, while Bitcoin has remained steady over the past week, there have been some big winners. We decided to give you a quick summary of these along with some key IntoTheBlock’s indicators:
Bitcoin Low Volatility vs Chainlink Breaking Record Week
The crypto market might seem incredibly boring to traders these days with Bitcoin and Ethereum behaving like stablecoins. However, a handful number of crypto-assets are showing an atypical momentum non-correlated with the rest of the space.
In this edition, we will compare the low volatile BTC against the blasting record token, Chainlink.
This Week Price Action Comparison
As of July 17, 2020 at 4am, EST.
LINK surged this week setting new all-time highs above $8.41 while Bitcoin’s volatility has seen an unprecedented decline throughout the past several weeks.
LINK rose 42% during the last 7 days, consistently hitting all-time highs. The crypto-asset is up 365% YTD.
Bitcoin price, on the other hand, only dropped 0.98% over the last 7-days. The price of this crypto-asset has remained at the range between $9,000 and $9,900 since May, showing a consolidation trend, followed by low volume and volatility.
See the Bitcoin Price See the Chainlink Price
New and active addresses in ChainLink has skyrocketed while the Bitcoin network hasn’t grown in size or activity in the last month
What does Addresses stats mean?
Every day, ITB reports the number of addresses that had any activity (“Active Addresses) while also indicating the number of New Addresses created vs those that have transferred out all their tokens (“Zero Balance Addresses”).
The number of active and new addresses in the Bitcoin network have remained very steady indicating which corresponds with the lack of momentum in the price.
See the Bitcoin’s Addresses Stats
The Chainlink network is growing at a healthy pace. Yes, the number of addresses is increasing but, more importantly, those addresses are active which shows strong momentum in the network.
See the Chainlink’s Addresses Stats
The number of transactions over $100,000 in ChainLink has increased 15x in 3 months while in Bitcoin have remained boringly steady
What does Large Transactions mean?
Intotheblock defines Large Transactions as transactions greater than $100K USD
Large fund transfers are always a sign a bullishness in Bitcoin. IntoTheBlock’s large transaction analysis shows that the volume moved in large transactions have remained incredibly steady.
See the Bitcoin’s Large Transactions Stats
IntoTheBlock’s large transaction analysis shows that there were only 22 LINK transactions over $100,000 in mid-April. Well, that number skyrocketed to over 300 n July 13rd.
See the Chainlink’s Large Transactions Stats
Can the price of Chainlink keep going higher?
The In/Out of the Money Around Price (IOMAP) indicator detects that over 2.95 thousand addresses previously purchased 3.61 million LINK at the range between $8.4 and $8.41, a critical resistance level.
Looking at the levels of support, the $8.36 mark may have the ability to hold. Roughly 3.14 thousand addresses had previously purchased over 6.73 million LINK around this price level. This could prevent Chainlink from declining below that level in the short term.
See the Chainlink In/Out of the Money Chart
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