Bitcoin Fair Value Less than $7,000 as per “Dire” On-Chain Stats

The first half of June hasn’t been a good one for bitcoin. Opening the month around $9,500 to see a pump and dump of more than a thousand dollars, the world’s leading cryptocurrency has been slowly making its way downwards that had it falling below $9,000.

Currently, BTC/USD is trading around $9,100, down 3.08% while managing $1.6 billion in real volume. Popular stablecoin USDT meanwhile is recording over $2.1 billion in volume in the past 24 hours.

These losses came despite the Federal Reserve supporting prolonged quantitative easing and keeping the interest rates unchanged at 0% to at least 2022.

“The USD is sitting on a major support line and will likely start a big move down given the recent Fed statement supporting prolonged QE. This is confirmed by strength in commodities and commodity-related assets. BTC setting up for a breakout is another confirmation,” tweeted Koyfin.

However, the US stock market is recording losses which could be because of the coronavirus cases surpassing 2.1 million in the country and 117,858 people losing their lives to it. Also, the Fed has warned of an ‘extraordinarily uncertain’ path to recovery.

Following stocks, bitcoin is also on the downslide. “I think it’s definitely part of the broader sell-off that we also saw in equities last week,” said Vijay Ayyar, head of business development with crypto exchange Luno.

“We tapped liquidity at the $10,000 level and are now coming back down. I expect $8,500 to hold, but if not we’re looking at $7,700 and then $7,100.”

A larger correction potentially at hand

Bitcoin exchange inflows are also increasing amidst this drop in price. This could mean people are looking to sell their BTC at higher prices in anticipation of a drop in price, although in the long term, exchange wallets are decreasing.

With price breaking down, it needs to be seen if miners will hold onto their inventory which they have already been selling more than they have been mining, as per MRI.

“Corn is hanging onto support by a bees dick here, my stop below the wick, if it loses that, it might get ugly and will have to go flat and re-evaluate,” said market analyst Benjamin Blunts.

Trader Altcoin Psycho sees the flagship cryptocurrency going even lower. We might even get to see $8,000 yet again.

Bitcoin has first support present at $9,200 and second level of support at just above $8,800. If the both are lost, trader Credible Crypto says, “a larger correction potentially at hand.”

On top of this, on-chain stats are not looking good either. According to Charlie Morris, founder of ByteTree, the fair value of Bitcoin currently is less than $7,000. He said,

“Bitcoin on chain stats are dire. 1 week network velocity down to 454%, 5wk 556%. Tx value down, av tx size down, fees down, MRI shot to pieces. Why the lack of interest? Can’t see price holding up. Fair value <$7k.”

Whales Accumulating

But, with BitMEX co-founder and CEO Arthur Hayes taken to tweet, “Spoos and bitcoin tanking at the same time. What a shame, take that JPOW wampum and put it to good use,” Crypto Twitter believes it to be a “temporary bottom signal.”

Moreover, bitcoin whales are seeing this as an opportunity to buy the dip. In the past year, the number of bitcoin whales holding at least 1,000 BTC has increased by nearly 9%. Bitcoin whales started accumulating in 2020, with a prominent spike in this recorded after the March sell-off.

Over 3 million bitcoin addresses are now holding more than 950 BTC.

Bitcoin (BTC) Live Price

1 BTC/USD =$39,376.3963 change ~ 6.38%

Coin Market Cap

$739.05 Billion

24 Hour Volume

$23.15 Billion

24 Hour VWAP

$38.56 K

24 Hour Change


Get Daily Headlines

Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

What to Know More?

Join Our Telegram Group to Receive Live Updates on The Latest Blockchain & Crypto News From Your Favorite Projects

Join Our Telegram

Stay Up to Date!

Join us on Twitter to Get The Latest Trading Signals, Blockchain News, and Daily Communication with Crypto Users!

Join Our Twitter

Add comment

E-mail is already registered on the site. Please use the Login form or enter another.

You entered an incorrect username or password

Sorry, you must be logged in to post a comment.
Bitcoin Exchange Guide