The Price of Bitcoin is Approaching the “Strongest and Most Important Support Area” in its History
- Since first hitting $6k, Bitcoin blockchain has grown in terms of Hash rate, payments & others
- Tx fees, active addresses, and median transactions value are on the decline
- Price wise we are approaching what is “a picture perfect bearish retest”
Till date in 2019, Bitcoin has risen 62 percent while being up about 90 percent from the lows of late 2018. Moreover, in the past two weeks, the leading cryptocurrency has surged 16.5 percent. And during these last two weeks, the news of Bitfinex and Tether losing $850 million and Binance getting hacked for 7,000 BTC (amounting to $41 million at that time) broke out.
The Bitcoin market currently screams bullish and strength!
How Far Have We Come?
It was October 29, 2017, when Bitcoin hit $6k for the first time and during this period a lot has changed.
Since then payments are up 3.4 percent while the hash rate has surged a remarkable 377 percent. From 1.020 MB, the block size has risen to 1.243 MB. Meanwhile, transactions per block have increased by 20 percent.
On the other hand, active addresses have fallen 17 percent from 911k to 759k. Adjusted Tx volume and Median Tx value are also down by 24 and 35 percent respectively. During this time, transactions fees (USD) dropped 67 percent.
Currently, Bitcoin is trading at $5,985 with 24 hours gains of 0.74 percent. Economist and crypto trader Alex Kruger says as the mission of $6k gets achieved, we are moving onto the most traded price of 2018, $6,400 which is the next target.
I tend to think this $BTC rally will continue to accelerate until we hit a resistance simply too big too handle. I'm keeping my longs open.
Bear market over. Bull market in? – I want to see how we handle $6350.
If we turn that into support – oof. Hope you bought the dip.
— The Crypto Dog📈 (@TheCryptoDog) May 9, 2019
According to the cryptoanalyst BT, BTC/USD is approaching the most significant horizontal level of the last cycle that is $6,100-$6,500. This, BT explains is the most important and strongest support area in Bitcoin’s history that we will be testing for the first time as resistance.
This is the area which is
“a picture perfect bearish retest.”
On the weekly chart, BT notes, we have established new supports below at ~5350, ~4600, ~4000, and ~3100.
“It has been funny to me as we get closer to this level more bears are turning bullish and the general sentiment has begun to reach outlandish levels of bullishness considering what is ahead,”
Since BTC price jumped on April 1st, everyone has turned extremely bullish but the analyst says as we move closer to this area, it’s time to
“wait and see then get blown out.”